The market performance of Polkadot (DOT) has shown significant volatility recently. In the last 24 hours, the DOT price has increased slightly by 1.64%, but over the past week, it has experienced a decline of about 8.32%. Currently, the trading price of DOT remains around $3.86.

Market analysis shows that DOT is facing a key resistance level at $4.60, while the support level is in the range of $3.78 to $3.82. Despite a short-term price pullback, the market remains optimistic about the long-term development of Polkadot. This optimism mainly stems from the ongoing upgrades of its ecosystem, including Elastic Scaling and the JAM upgrade in Polkadot 2.0, as well as the upcoming Ethereum Virtual Machine (EVM) compatibility.

Polkadot's recent tokenomics reform has also attracted widespread attention, especially the decision to set a total supply cap of 2.1 billion tokens. This move is expected to increase the scarcity of DOT in the medium to long term, but it may raise some inflation concerns in the short term.

For investors, the high volatility of DOT means that high risks and high returns coexist. However, Polkadot's unique cross-chain interoperability solutions and its evolving ecosystem place it in a significant position within the Web3 infrastructure. The recently launched HOLLAR stablecoin aims to enhance the decentralized finance (DeFi) liquidity of the Polkadot ecosystem, which may attract more capital inflows.

Nevertheless, investors must carefully assess their risk tolerance and conduct thorough market research before making decisions. The future development path of Polkadot is full of opportunities, but it also faces uncertainties and challenges. In the rapidly changing cryptocurrency market, it is crucial to remain vigilant and continuously monitor market dynamics.