Inspecting The Community’s Progress, Challenges, And Future Prospects

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Inspecting The Community’s Progress, Challenges, And Future Prospects



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Market intelligence agency Messari just lately launched its third quarter (Q3) efficiency report for Polkadot (DOT), offering insights into the blockchain community’s growth and monetary metrics throughout this era.

Polkadot Sees Sturdy Developer Engagement

One of many notable findings from the report is the developer exercise on Polkadot. In accordance with Electrical Capital, the community had roughly 2,400 month-to-month lively builders in July 2024, with 760 labeled as full-time contributors. This positioned Polkadot fourth amongst main blockchain networks, trailing solely Ethereum, Base, and Polygon. 

Moreover, Artemis tracked a mean of 630 weekly lively core builders and 760 ecosystem builders throughout Q3, underscoring a vibrant growth group.

Associated Studying

Polkadot additionally made important strides in Q3 2024 with a number of key initiatives aimed toward enhancing its ecosystem. The Decentralized Futures program, backed by a considerable $20 million fund and 5 million DOT tokens, has been pivotal in driving innovation. 

This initiative supplied grants to numerous initiatives specializing in advertising, enterprise growth, governance, and expertise. Notable initiatives supported embody AirLyft, DotPlay, and BlockDeep Labs.

One other vital growth is the Cross-Consensus Message Format (XCM), a standardized messaging protocol that facilitates communication between completely different consensus-driven techniques, together with rollups. 

Polkadot
Polkadot’s switch efficiency throughout Q3. Supply: Messari

Each day XCM transfers averaged round 1,000, representing a 34% decline quarter-over-quarter (QoQ). In distinction, non-asset switch use instances, known as “XCM Different,” skilled a 5% improve, averaging 200 each day transfers. 

Total, complete each day XCM messages averaged 1,300, reflecting a 29% drop QoQ. Regardless of these fluctuations, a good portion of exercise on the Polkadot community continues to happen by Polkadot rollups.

DOT Market Cap Plummets 27% In Q3

By way of market efficiency, DOT has skilled notable volatility by the yr. From Q3 2023 to Q1 2024, DOT’s market capitalization soared by 150%, rising from $5 billion to $13 billion. 

Nonetheless, within the subsequent quarters, together with Q2 and Q3 2024, DOT retraced alongside the broader market, ending Q3 2024 with a market cap of $6.3 billion—a 27% decline QoQ. This drop additionally noticed DOT’s market cap rating fall from 14th to fifteenth, even because it stays the seventh largest base layer community.

Polkadot
DOT’s market cap lower all year long. Supply: Messari

Transaction charges on the Polkadot chain have typically remained decrease in comparison with opponents, attributed to the community’s structural design. In Q3 2024, transaction charges aligned with historic averages, totaling $84,000—a 44% lower QoQ. Charges denominated in DOT additionally declined by 21% to 17,000.

Associated Studying

The Polkadot Treasury alternatively, noticed continued lively utilization, with 9.5 million DOT allotted for proposals, 7.4 million for bounties, and a couple of.5 million burned. 

A major growth was the approval of Polkadot Referendum 457 in Q2 2024, which diversified the treasury with USDT and USDC, enabling treasury proposals to be denominated in stablecoins. By the top of Q3 2024, the treasury steadiness stood at $122 million.

Each day lively addresses dropped to six,200 (-26% QoQ), each day returning addresses decreased to five,300 (-23% QoQ), and each day new addresses fell to 900 (-38% QoQ). 

Polkadot
The each day chart exhibits DOT’s worth consolidating above the $8 mark. Supply: DOTUSDT on TradingView.com

By way of quick worth motion, the DOT worth has traded on the $8 stage for the previous 4 days, and has since consolidated above it. The token has been among the best performers since Donald Trump’s election on November 5, posting a considerable 96% acquire within the month-to-month timeframe. 

Featured picture from DALL-E, chart from TradingView.com

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