Despite being the top laggard large-cap cryptocurrency in 2024, **Polkadot** may experience a strong rebound in 2025 due to a rare chart pattern. The coin retreated by over 15% this year, while other top coins like **Bitcoin**, **Solana**, and **Binance Coin** soared to their all-time highs.

Underperformance Despite Successful Ecosystem Launches

Polkadot’s underperformance occurred even as its network saw successful ecosystem launches. For instance, Hydration, a leading decentralized exchange within the Polkadot ecosystem, handled a record-high volume of over $124 million in December. Additionally, Polkadot’s NFL Rivals, a digital collectible card game, has gained traction among NFT traders.

Other notable developments within the Polkadot ecosystem include Bifrost, a liquid staking network, accumulating over $15.1 million in assets, while Moonwell, a lending protocol, has nearly $200 million in total value locked.

Rising On-Chain Activity

On-chain data also shows that the number of transactions on Polkadot has continued to rise, hitting a record high this week. According to The Block, Polkadot saw 8.52 million transfers in December, slightly down from 9.11 million in November. However, transfers in the fourth quarter reached an all-time high, signaling robust activity on the network.

High Staking Yields and Strong Fundamentals

Polkadot offers one of the highest staking yields among major cryptocurrencies, with a yield of 12% and a staking ratio of 25.13%. These strong fundamentals may support a price rebound in the coming months.

Chart Patterns Indicate a Potential Breakout

The daily chart indicates that DOT price has pulled back over the past few weeks, falling from this month’s high of $11.70 to the current $6.8. Despite this, Polkadot has remained above the 100-day and 200-day Exponential Moving Averages, signaling positivity.

A cup and handle chart pattern has formed, with the ongoing retreat representing the handle. Additionally, a falling wedge pattern, a well-known bullish reversal indicator, has emerged. As the two lines of the wedge approach their confluence, the price is likely to experience a bullish breakout.

Tips for investors:

  • Keep an eye on the falling wedge pattern and the potential breakout.
  • Monitor the on-chain activity and staking yields for further signs of strength.
  • Consider the fundamentals of the Polkadot ecosystem and its potential for growth.

As the cryptocurrency market continues to evolve, it’s essential to stay informed about the latest developments and trends. Stay up-to-date with the latest news on Global Crypto News.

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