The writer's opinion is presented and it is not financial, investment, trading, or other types of advice. Despite a bearish order block limiting DOT's bullish advance, open interest has maintained an upward movement. Polkadot's buyers have been persistent in July, resulting in favorable price gains and keeping the altcoin's upward trajectory despite the general market correction led by Bitcoin's decline below $30k. On-chart indicators show bullish intent, but a drop below the $5.23 level would be a sign of a bearish takeover in the short term. Rising open interest highlights growing bullish confidence.

According to Jonah Van Bourg, user counts and wallet addresses have plateaued on alternative layer-1 blockchains such as Solana, NEAR, and Polkadot, making their ecosystems "dead on arrival." Meanwhile, Ethereum layer-2 solutions like Arbitrum and Optimism are flourishing.

Despite an increase in development activity and unique addresses in Q2, the price of Polkadot's native token, DOT, has remained stagnant. However, the blockchain's advancement in interoperability could lead to rapid gains for DOT in Q3. Polkadot offers an ecosystem of custom blockchains called "parachains" that can host decentralized applications and be deployed on Polkadot's central hub, the Relay Chain.

Polkadot (DOT) has remained strong in the market despite fluctuations, with investors maintaining their bullish position. Ripple's legal victory against the SEC has positively impacted the entire market, including altcoins like DOT.

Crypto analyst Benjamin Cowen predicts that altcoins such as Polkadot, Cardano, and Avalanche will experience short-lived rallies before crashing back down to fresh lows, following a similar pattern to that of 2018. Cowen believes that the current altcoin rally will stall once Bitcoin's dominance level reestablishes itself.

Polkadot founder Gavin Wood has proposed a revamp of the network's resource allocation system, called Polkadot 2.0, which would create a network of sovereign chains connected by "accords." The current system of auctioning off parachain slots has been problematic, but Wood's proposed framework would allocate "core time" via a marketplace, represented by NFTs. Wood's new vision for Polkadot is "application centric, not chain centric," and would address the biggest drawbacks of Polkadot 1.0, allowing for more seamless integration of apps across chains. However, deploying on Polkadot is more challenging than deploying on Ethereum or an L-2 due to its heavy-duty nature.

Polkadot's DOT has found support at $5.0 against the US Dollar and is slowly increasing in value. The price may experience a surge if it surpasses the resistance levels of $5.30 and $5.40. The DOT/USD pair is trading above the $5.20 zone and the 100 simple moving average (4 hours), with a bullish trend line forming at $5.10.

Polkadot's revenue and active addresses have decreased in the past week, but the blockchain's value has continued to increase. Market indicators suggest that DOT's price may drop further, as it has already declined by over 7% in the last week.

Polkadot remained committed to the development and expansion of its network in Q2, exhibiting consistency in key network fundamentals such as staking, treasury usage, and parachain activity. Noteworthy milestones achieved during this period include the launch of OpenGov, introducing an advanced governance model, and the introduction of XCM V3 on Polkadot’s mainnet.

Recent studies have shown that Polkadot is leading in developer activity among multi-chain cryptocurrency networks, despite its native token DOT remaining stagnant in the market.