Polkadot shows recovery signs despite low ETF inflows and declining network activity.

Polkadot is showing potential for recovery as regulatory clarity from the SEC classifies its token DOT as a digital commodity, and a major tokenomics reform caps supply and reduces emissions, enhancing scarcity. However, the 21Shares Spot DOT ETF has seen minimal capital inflows, reflecting weak institutional interest, while on-chain activity has dropped significantly. Despite a brief price boost after reforms, sustained investor confidence remains uncertain amid broader market dominance by Bitcoin and Ethereum.