Polkadot in April: explaining the 90% drop in transactions

• Polkadot has seen a decline in user activity this month.
• Demand for its DOT coin also remains low.

Monthly transaction volume in Lunares [DOT] Relay Chain and parachains are set to close April at their lowest level so far this year (YTD), data from The Block has shown.

Relay Chain is the central chain of the Polkadot network that handles the coordination and security of the blockchain. Their parachains refer to individual blockchains that run in parallel and are connected to the relay chain.

So far this month, the network’s transaction volume has totaled $400 million, representing a 56% decrease from the $916 million recorded in March. Polkadot’s monthly transaction volume has fallen 90% from $4 billion in late January.

Polkadot witnesses user drought

The decline in economic performance on the Polkadot Relay Chain and its parachains is due to low user activity on the network in April.

According to data from The Block, the last 25 days have been marked by a 43% drop in the number of unique addresses active on the network’s Relay Chain as senders or receivers.

Likewise, demand from new Polkadot Relay Chain users has plummeted.

So far this month, the number of unique addresses appearing for the first time on the network amounts to 44,000. This represents a 60% drop from 112,000 new Layer-0 blockchain claims in March.

Across its various parachutes, the month has seen a corresponding decline in user activity. According to data from The Block, the monthly active address count closed March with a year-to-date high of 6 million.

However, April has seen a reduction in network activity on the Polkadot parachains, with only 2.2 million active addresses registered in the last 25 days.

In addition, new demand for these parachutes has decreased. In the last 25 days, only 101,000 new addresses have used these networks. In March, they registered 1.52 million new addresses.

look before you leap

Although DOT’s moving average convergence/divergence (MACD) readings showed a resurgence of bullish sentiments, it is key to note that demand for the altcoin remains low.

Read Polka Dots [DOT] Price prediction 2024-25

At the time of writing, the currency’s key momentum indicators were below their respective centerlines, suggesting that market participants favored sell-offs over accumulation.

Its Relative Strength Index (RSI) was 38.72, while its Money Flow Index (MFI) was 37.20.

This is an automatic translation of our English version.