Polkadot Sees Stellar Growth with $12.7B Capitalization Amid Revenue Dip


Polkadot (DOT), a prominent blockchain protocol, has been making quite a splash in the finance world, according to recent data from a Messari report. These figures, taken from just the first quarter (Q1) of 2024, paint a spectacular story of growth across several facets of the protocol, including market capitalization, revenue, and activity in the Cross-Consensus Message Format (XCM).

In terms of market capitalization, Polkadot saw a colossal 111% quarter-on-quarter (QoQ) increase in Q4 2023, pushing this tally up to an impressive $8.4 billion. But the Polkadot train didn’t stop there. Q1 2024 brought more good news in the shape of a further 16% QoQ boost, catapulting the circulating market cap to an incredible $12.7 billion.

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But let us not forget, back in the autumnal days of November 8, 2021, DOT’s market capitalization topped out at an all-time high of $55.5 billion but has since fallen and currently stands 80% below this peak.

Meanwhile, Polkadot’s revenue also made leaps and bounds in Q4 2023, with a jaw-dropping 2,880% QoQ increase to shake the protocol’s monetary core to the tune of $2.8 million. One of the main driving forces behind this revenue rocket was the impressive surge in extrinsics, thanks primarily to Polkadot Inscriptions.

However, the new quarter revealed a rather dramatic turn of events, as Polkadot’s revenue metrics for Q1 2024 experienced a significant pullback. Revenue in USD took a 91% PLUNGE to $241,000, whereas revenue in DOT saw an even sharper decline, waning by 92% to 28,800. It’s worth mentioning, though, that Polkadot’s revenue figures typically trail those of its rivals due to the network’s particular architectural design.

XCM activity set an optimistic tone by heading upwards yet again in Q1 2024. The number of daily XCM transfers soared by a solid 89% QoQ, hitting 2,700, while another component of the Polkadot ecosystem, defined as “XCM other,” saw a whopping 214% QoQ growth, touching an average of 185 daily transfers. The overall daily XCM messages grew 94% QoQ to stand at a healthy 2,800, while active XCM channels increased 13% QoQ, tallying up to 230 channels.

The first quarter of 2024 proved monumental for Polkadot’s parachains as well, as active addresses peaked at an unprecedented 514,000. This figure represents a substantial 48% QoQ growth.

First place on the Parachain leaderboard was claimed by Moonbeam, with 217,000 monthly active addresses, indicating a substantial 110% QoQ growth. Meanwhile, Nodle was hot on its heels, emerging a close second with 54,000 addresses, doubling from the previous quarter.

In contrast, Astar only saw an 8% QoQ boost to 26,000, and Bifrost Finance climbed by a modest 2% QoQ to 10,000. However, not all experienced growth, as Acala saw its active addresses tumble by 16% QoQ.

Q1 2024’s standout performance was by the Manta Network, which boasted a significant surge in daily active addresses to reach 15,000. This surge resulted from the triumphant launch and subsequent listing of the MANTA token TGE on Binance which sent Manta’s Total Value Locked (TVL) soaring past the $440 million mark.

Currently, the price of Polkadot’s native token DOT sits at the $7.25 mark, up an optimistic 7% over the last week. However, it’s important to note that DOT’s trading volume has decreased slightly by 4.7%, now amounting to $320 million over the past 24 hours, according to CoinGecko data.

Should DOT’s bullish momentum hold steady, a resistance benchmark of $7.4 could be on the cards. This limit serves as the last obstacle to a possible $8 resistance wall check. Meanwhile, on the flip side, the $6.4 support line has been tested and held firm for two straight days this week, underscoring it as a crucial level for the token’s potential upward movement moving forward.

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Melinda Cochrane is a poet, teacher and fiction author. She is also the editor and publisher of The Inspired Heart, a collection of international writers. Melinda also runs a publishing company, Melinda Cochrane International books for aspiring writers, based out Montreal, Quebec. Her publication credits include: The art of poetic inquiry, (Backalong Books), a novella, Desperate Freedom, (Brian Wrixon Books Canada), and 2 collections of poetry; The Man Who Stole Father’s Boat, (Backalong Books), and She’s an Island Poet, Desperate Freedom was on the bestseller's list for one week, and The Man Who Stole Father’s Boat is one of hope and encouragement for all those living in the social welfare system. She’s been published in online magazines such as, (regular writer for) ‘Life as a Human’, and Shannon Grissom’s magazine.