Polkadot gains bullish momentum after regulatory clarity and tokenomics overhaul, but network activity declines.

Polkadot has seen renewed bullish interest following recent regulatory clarity from the SEC, which classified DOT as a digital commodity, and a major tokenomics update that capped supply and cut annual emissions by 53%. Additionally, the launch of the 21Shares Spot DOT ETF contributed to optimism. However, despite these positive catalysts, Polkadot's network activity has significantly declined over the past two years, with active addresses dropping from 16,000 to 5,000 weekly. The token's price briefly rallied 18% on positive sentiment but faced resistance at $1.65 and may pull back further amid ongoing macroeconomic uncertainty. It remains uncertain how quickly the recent upgrades will revive user adoption and market momentum.