Polkadot (DOT) Circulating Market Cap Rockets To $8.3 Billion, Registers Massive 111% Growth
February 01 2024 - 7:00PM
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Polkadot, the computing platform known for its interoperability and
scalability, has shown remarkable growth in key metrics during the
latter part of 2023, as outlined in a recent report by
Messari. Outpacing Crypto Market Growth According to
Messari’s findings, Polkadot’s circulating market cap experienced a
remarkable 111% quarter-on-quarter (QoQ) growth, reaching an
impressive $8.38 billion. This growth outpaced the overall
crypto market’s growth of 54% during the same period. Furthermore,
Polkadot’s year-on-year (YoY) change reached 94%, solidifying its
position among the top 15 crypto projects by market capitalization.
Related Reading: Stablecoins Surge: USDT Leads $400 Million
Inflows, Signaling Investor Confidence In terms of revenue,
Polkadot witnessed a substantial surge of 2,880% QoQ, generating
$2.8 million in Q4 2023. This surge was primarily attributed to the
significant rise in extrinsic, driven by the introduction of
Polkadot Inscriptions. Messari suggests that even excluding
the four-day spike from the Inscriptions, Polkadot’s revenue would
have doubled from the previous quarter. It is worth noting that
Polkadot’s revenue tends to be relatively lower compared to its
competitors due to the structural design of its network. Polkadot
Witnesses Significant Increase In Active Addresses Following the
launch of OpenGov – the governance module and framework within the
network – in June, the Polkadot Relay Chain experienced a surge in
account activity, largely due to increased governance
participation. Because the Relay Chain is critical in
facilitating governance processes, it experienced a spike in active
addresses on October 24, when users claimed their locked DOT tokens
from the first batch of parachain auctions held two years earlier.
Throughout Q4, the Polkadot Relay Chain averaged over 10,000 daily
active addresses, representing a substantial 90% QoQ increase.
Excluding the October 24th activity related to DOT token claiming,
the average number of active addresses still saw a significant 70%
rise in QoQ, reaching 9,000. Additionally, Cross-Chain
Message (XCM) transfers on the platform increased by 150% QoQ,
reaching an all-time high of 133,000. The total number of active
XCM channels nearly tripled in 2023, reaching 203 by the end of the
year. According to Electric Capital’s rankings, Polkadot has 800
full-time and 2,100 total developers, making it one of the largest
crypto ecosystems in developer participation. DOT Price Shows Mixed
Performance Despite notable growth in key metrics demonstrating the
network’s expansion, the price of Polkadot’s native token, DOT, has
not followed suit and has even experienced declines over longer
time frames despite positive developments. Currently, DOT is
trading at $6.7420, representing a slight 0.3% price increase in
the past twenty-four hours, coupled with a 9% year-to-date gain.
However, over the past fourteen and thirty days, the token has
recorded a 6% and 22% price drop, highlighting the absence of
bullish momentum and catalysts that could propel DOT to higher
levels. Related Reading: Celsius Follows FTX As It Begins Repaying
Crypto To Creditors, Here’s How Much Although it reached a 19-month
high of $9.5711 on December 26, the subsequent price drop has led
DOT to a critical juncture, potentially erasing its gains over the
past year. If the current level and its nearest support at $6.3229
fail to halt further price declines, DOT could potentially drop to
the $5.4830 level, which serves as the next major support in the
token’s 1-day chart. Conversely, if DOT surpasses its upper
resistance at $7.0392, the next objective would be to break the
short-term downtrend structure, facing the $7.5332 resistance and
another resistance at $8.1631. This would pave the way for another
consolidation phase at its 19-month high. Featured image from
Shutterstock, chart from TradingView.com
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