Polkadot Surges 10.7% Amid Short Squeeze and On-Chain Activity Boost

Polkadot (DOT) experienced a significant price surge of over 10.7% in just 25 hours, driven by multiple factors.

One key driver was an increase in on-chain activity, with daily network usage spiking nearly 150%. This growth was attributed to interactions within the recently deployed 'Polkadot Products Devnet' and renewed focus on Polkadot 2.0, Agile Coretime, and the upcoming JAM roadmap.

A short squeeze also played a role in DOT's price increase, with over $610,000 of bearish positions being liquidated, forcing shorts to buy back DOT.

The price action broke through the key psychological level of $1 after a long downtrend, and sentiment posts celebrated DOT reclaiming this level. The move occurred against a backdrop supportive of selective altcoin rallies, with the altcoin season index rising over the last week and overall fear and greed readings sitting in the 'greed' zone.