Polkadot Plummets 5.4% Amid Market Pullback and Disappointing ETF Flows

Polkadot (DOT) took a hit over the last 15 hours, dropping by roughly 5.4 percentage points. This decline is linked to a broader market pullback and disappointing ETF flows.

The launch of the 21Shares spot DOT ETF on Nasdaq on September 18 initially boosted DOT by around 10%, but it failed to live up to expectations in subsequent days, rising only 0.7% while major coins saw gains of 4-8%. Weekly crypto ETF flow data show that BNB and Polkadot had no inflows.

Concerns about validator and infrastructure wallets selling rewards have also created a perception of structural sell pressure on DOT. A recent thread criticizes certain 'infrastructure builders' and validators for allegedly dumping around 94% of their staking rewards on the market.