This is a thickness problem. Base coat, two thin color coats and a top coat (plus a glitter layer in between if I’m feeling it), so four or five total is pretty normal.
The smudging and denting you’re describing is almost always too much polish per swipe. Each coat should be a thin, almost sheer pass that dries in a couple of minutes. Going back over wet spots to fix streaks is where the dents come from.
Use thin coats and wait 2 minutes between each (more on that here).