Polkadot treasury net flows turned negative in April 2025. With dropping DOT reserves and mounting selling pressure, the situation has raised concerns among holders. The upcoming JAM upgrade is expected to influence DOTUSDT prices positively.

Just when it appeared that DOT was gaining momentum, an alarming financial metric turned red once more.

A close observer of Polkadot’s performance, referencing Dune analytics, highlighted that net flows for the Polkadot Treasury shifted to negative in April 2025. This downturn has raised alarms among DOT holders regarding the financial health and long-term viability of the network.

According to Dune, March 2025 recorded robust net inflows exceeding 962,000 DOT into the treasury. However, in April, net flows plummeted, decreasing by nearly 101,000 DOT. This shift signals that the Polkadot Foundation’s expenditures surpassed the income generated from network activities.

For DOT holders, these negative net flows have far-reaching implications beyond mere accounting: it impacts the network’s broader stability.

What This Means for DOT

Incomes to the treasury are vital for supporting communal innovations. A negative net flow indicates that the foundation is spending more on development and marketing than it generates from gas fees or other revenue avenues like validator slashing. This trend poses risks for ongoing funding of community projects, which could slow investments into promising ventures.

The downward trend could also apply additional price pressure on DOT. Since December 2024, DOTUSDT has decreased over 60%, further intensifying the challenges for holders.

DOTUSDT

As more than half of the treasury’s liquid assets are in DOT, funding any proposals necessitates converting some shares into stablecoins or fiat, resulting in direct selling pressure on exchanges like Coinbase and Binance.

In addition, apprehensions about fund management allegations in 2024 and diminishing reserves are compromising investor trust in the Polkadot narrative. Delays related to the U.S. SEC’s confirmation of a spot DOT ETF are also likely to hinder capital inflows, contributing to an adverse cycle for the ecosystem.

JAM Upgrade and Revenue Generation

To rejuvenate reserves and boost revenue, Polkadot needs to draw in more users and projects. Legislative changes encouraging treasury diversity and converting DOT to stablecoins like USDC signify a constructive step forward. Furthermore, the implementation of Agile Coretime, a system leveraging parachain bandwidth for revenue, is anticipated to enhance flows, supported by Referendum 1200.

Anticipation mounts for the JAM upgrade, which promises improved performance, increased throughput, and quicker transactions, helping Polkadot maintain its competitive edge in a crowded layer-1 market.

Conclusion

The combination of declining treasury flows, spending cuts on marketing, and the SEC delaying approvals for a spot DOT ETF raises pertinent queries about the future of DOTUSDT. The community awaits answers regarding whether the upcoming JAM upgrade will bring the necessary support to attract more users.