Belgium (CoinChapter.com) — As the cryptocurrency industry grows, there will be broader interest in various projects. For those projects to remain relevant, however, they need a viable ecosystem with long-term potential. Whether Polkastarter falls into this category is a matter of opinion, yet interesting things are happening behind the scenes.
An Overview of Polkastarter
Whereas some may confuse Polkastarter with Polkadot, they are two very different ecosystems. Although Polkastarter will migrate to the Polkadot network once parachains go live, it will remain a separate entity for the foreseeable future. As a protocol built for cross-chain token pools, there are many potential opportunities for the future.
One of the main reasons people show an interest in Polkastarter is that it is a gateway to upcoming Initial DEX Offerings (IDO). There are many upcoming pools for users to explore, allowing them to gain access to new tokens that may — or may not — rise in value over the coming months.
POLS Price Performance Wanes
One thing not necessarily working in favor of the POLS token is its price performance. Although it hasn’t been around for an entire year to draw any accurate conclusions, the recent performance isn’t too outstanding. A net 38.5% price decrease over the past 30 days will not make too many people happy. To others, it may seem like a viable market entry point.
Zooming out a bit further, however, things look even slightly worse. After a very successful run to over $6 per POLS, the market has yet to find any stable support level. As the price is now below $3, there is a retrace by over 50% from the all-time high. Turning the ship around will prove essential, but it may take a while for it to happen.
Rising Demand For IDOs
What sets Polkastarter apart from other Polkadot-based projects is how it makes accessing IDOs more straightforward. As Initial DEX Offerings near the same popularity as ICOs a few years ago, it will be interesting to see how this ecosystem evolves over the coming months.
Several of these IDOs prove of great interest to community members. Projects such as Genesis Shards and Polkalokr are currently generating a lot of buzz on Reddit, although no one knows if these projects will succeed in the long run. Even so, the majority of people invest in these tokens for speculative purposes.
Social Volume Is Decreasing
One of the more intriguing metrics for any cryptocurrency asset is the social volume across different platforms. For Polkastarter, there is a strong decrease in volume across all major platforms except Medium. More specifically, the social volume is down by nearly 52% in the past month, as are the social engagement, contributors, and dominance. That is not a good outlook for this project.
The sentiment toward POLS, however, is in a very peculiar place. The bullish sentiment is down by 47.3%, yet there is also a 74.2% decrease in bearish sentiment. It is unusual to see both aspects offset one another, yet the outcome remains a bit unclear. Given the current POLS price action, there doesn’t appear much room for excitement.
It is not hard to see why people have high hopes for Polkastarter as a platform providing access to initial DEX Offerings. Whether that warrants any POLS excitement, however, is a different matter. The price of this token seems uncorrelated to the evolution of the platform and ecosystem, making one wonder what the future will hold.
Whether investing in POLS is a smart decision remains a different matter. Some may see this as a market opportunity, whereas others may not see much long-term potential for the token. POLS grants indeed access to upcoming IDOs- under specific circumstances – but whether that is sufficient to drive long-term value to the token is a tough question to answer.