July 2, 2024 Grandpa checks in
I saw a piece of news about Polkadot. The Treasury report for the first half of 2024 released by Polkadot on the official governance forum caused complaints from investors. The main reason is that the expenditure in the first half of the year exceeded the sum of the past two years, reaching 87 million US dollars, of which promotion fees accounted for 42%, and most of these expenditures depended on DOT sales, which may be one of the reasons for the poor performance of DOT prices. DOT is a star project, and parachains were once popular, but because the ecosystem has never developed positively, it is still a question whether the next bull market can break out.
In fact, I have a relatively good impression of Polkadot, especially the technology, which is highly expected by the market, and its founder also came from Ethereum, so both its fame and technology are worth paying attention to. However, the extremely large-scale expenditure this time, especially that nearly half of it is for promotion, is puzzling. It stands to reason that the popularity is high enough, and the bulk of the expenditure should be on technology. In addition, in the past six months, we have not seen any technical progress of Polkadot, nor have we seen much publicity for Polkadot, which can even be described as dull. No wonder everyone is dissatisfied with the foundation.
Everyone knows the common problem of the B circle, that is, there are only a handful of projects that can really create value, and the current value creation areas in the circle are mainly related to transactions, which must rely on the entry of new funds to bring about price increases. It can also be clearly seen from the price performance of Bitcoin that the recognition of stored value will eventually drive long-term price increases, but for projects like DOT, if there is no value that is recognized and developed in the long term, it will eventually be abandoned by the market. This is also the fundamental reason why a large number of old coins are eliminated in each round of bull-bear conversion.
In terms of market conditions, Bitcoin's daily level failed to break upwards directly, but instead showed sideways movement. It would be reasonable if Bitcoin continued to adjust back to around 60,000. However, since it has bottomed out before, the probability of Bitcoin returning to above 65,000 is extremely high in the short and medium term, and this is also a signal that the overall market has reached a stage bottom. In my opinion, the only thing missing from the copycat market is a signal from the overall market, so it is not a big problem to continue to buy at low prices.
Thank you for your attention and likes.
