Polkadot ecosystem’s number of active addresses hit a record at 514 000 per day

What’s new? Experts from the research company Messari have released a report on the state of Polkadot at the end of Q1. They reported that the number of daily active addresses in the blockchain ecosystem set a new record at 514 000, increasing by 48% compared to the previous reporting period. The six-month growth rate was 192%.

Messari’s report

What else is known? From October through December 2023, Polkadot had revenue of $2,8 million, adding 2880% for the quarter. As Messari notes, the surge was mainly due to the emergence of a new asset type, Inscriptions, similar to bitcoin NFTs. However, already in Q1 of this year, revenue fell 91% to just $241 000.

In this regard, the company considered it more correct to compare the results of the last reporting period with the third quarter of 2023: in this case, the revenue shows an increase of 249%. Analysts emphasized that Polkadot’s revenue is usually relatively lower compared to its competitors due to the structural features of the network.

As for the native token DOT, which is used for voting, staking, and operation of Polkadot-based parachains, by the end of Q1 2024, 52% of the coins were locked in staking. The tokenomics of the asset, however, does not include a maximum supply limit.

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At the end of March, the project’s treasury held 37 million DOT worth $347 million, the volume of coins fell by 16% over the quarter, and in dollar terms, the decline amounted to 5,3%. The treasury is funded by staking fees, validator fines for malfunctions, and transaction fees.

Messari also noted that Polkadot boasts one of the largest developer bases in the crypto industry. In December 2023, Polkadot had an average of around 2100 developers, of which 792 were full-time, putting the ecosystem in second place behind Ethereum.

Also during the reporting period, the Cross-Consensus Message Format (XCM) mechanism, which links Polkadot-based parachains together, continued to grow in activity. The total number of daily XCM messages was 2800, up 94% from the previous quarter and 314% from Q3 2023.

The Moonbeam network solidified its position as the leading Polkadot parachain with a 110% month-on-month increase in active addresses to 217 000. It was followed by Nodle with a doubling of active addresses per month (54 000). Astar saw moderate growth to 26 000 (+8% for the quarter), while Bifrost saw a 2% increase to 10 000. And Acala saw a 16% decrease in active addresses per month to 13 000.

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The Manta Network also showed significant growth: on January 18, the team launched the MANTA token, which was subsequently listed by the largest centralized crypto exchange Binance. The launch helped the network’s total value locked (TVL) grow above $440 million, and the number of daily active addresses reached 15 000.

Notable Polkadot achievements for the quarter at Messari included the creation of a Join-Accumulate Machine (JAM) virtual machine. It combines Ethereum and Polkadot functions, as well as the approval of Proposition 457, which aims to diversify Polkadot’s treasury with USDT and USDC stablecoins.

DOT ranks 15th in the overall cryptocurrency ranking by market capitalization with a figure of $9,6 billion and is trading at $7,06, having added 0,9% overnight. At the same time, the decline has approached 14% since the beginning of the year.