Polkadot's Price Plummets 96% Since Peak Amid User, Developer Exodus

Polkadot, a blockchain platform that raised $500 million in funding, has faced significant challenges in retaining users and developers over the long term. The platform's price has plummeted 96% since its peak in November 2021, as on-chain demand has dried up. This decline has raised questions about the long-term viability of the platform.

Polkadot's price has been a clear indicator of its struggles. The token has fallen 93.9% from its all-time high of $55, set nearly four years ago. This significant drop has sparked debates about the platform's future. Some analysts, such as Nonzee, have gone as far as to declare Polkadot "dead," citing its failing usage metrics and ecosystem decay.

Despite its ambitious goals to outpace Ethereum as the go-to chain for developers, Polkadot's momentum faded after the launch of Parachains. Real usage stalled, with daily active users across major chains falling to 5,000 in 2025. Developer interest, once strong, declined from 2,400 to 1,000. This decline in network usage led to a halt in fresh capital inflows, while existing investors exited the market.

As a result, DOT’s trading volume plummeted from 39 billion to 5 billion, indicating reduced on-chain activity. Revenue also evaporated, with Polkadot generating just $462 and staying below $1,000 for two consecutive months. This is a red flag for a network once hyped as an infrastructure cornerstone. Polkadot’s circulating market cap dominance sat at a meager 0.15%, cementing its slip into irrelevance amid competing chains. Investors responded by reallocating funds elsewhere.

While DOT has continued to decline, other crypto assets are growing. This trend is a cause for concern as investors take a step back from the market. According to AMBCrypto’s analysis, Polkadot is experiencing unfavorable market conditions. These circumstances position DOT for potentially more losses on its price charts. As of the latest data, it traded at $3.3, down 26.8% in a month and 47.1% over the year. Its RSI drifted toward oversold territory, signaling prolonged sell-side aggression. If sellers persist, DOT risks a fall to $3.0 support, then potentially $2.8.

Buyers would need to step in soon to prevent deeper damage. A bounce isn’t impossible. If sellers ease, DOT may attempt a push toward $3.6 resistance. But if it breaks below $2.6, the case for DOT being a “dead chain” might be more than just harsh commentary. The future of Polkadot remains uncertain as it navigates these challenging market conditions.