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Nearly 130 million polkadots (DOT) in parachains as of Q1 2022, report

Nearly 130 million polkadots (DOT) in parachains as of Q1 2022, report, Crypto Trading News
The cryptanalysis resource Messari published a report on the performance of polka dots in the first quarter, which outlined the price action of the Layer Zero protocol, network usage, the latest developments in staking and decentralization, and future opportunities.

The newspaper stated that Polkadot was 13 parachainsuccessfully closed slot auctions totaling 127.8 million DOT – valued at $2.9 billion (at the end of Q1) and approximately 11% of total supply. Additionally, 28 more parachain slot auctions are planned through February 2023, bringing the total to 41.

Although active and new accounts have declined over the same period, the growth of parachains confirms the steady progress of the ecosystem.

Decentralized staking

A day after the protocol approved the first parachain slots auction for November 11th last year, DOT ATH at $55.08. Since then, however, the asset’s price has traded lower along with the broader market. The report attributed the drop in active accounts to users locking their DOT to support their desired parachains in a slot auction, as a DOT locked in a crowd loan cannot be withdrawn for use in other applications.

Meanwhile, throughout the first quarter of 2021, the number of addresses with DOT has steadily increased, indicating a steadily growing interest in the ecosystem, although the market continues to decline.

By taking over the consensus mechanism Nomination Proof-of-Stake (NPoS), which aimed to decentralize the network’s validator set, had Polkadot 294 out of 297 (99%) of the validators getting 1.8-2.6 million DOT staked.

It is viewed as a form of healthy validator distribution by total stake – a success of decentralizing total power due to the mechanism that encourages nominators to stake with lower stake validators to earn higher rewards.

The number of working developers is also a critical metric that assesses the robustness of an ecosystem. The report noted that “During the first quarter of 2022, average monthly developer activity decreased by 10% as developers prioritized activation of previously deployed features rather than developing new features.”

It concluded that the developer activity of polka dots in crypto is still at the top and just lagging behind Ethereum.

ecosystem challenges

The Polkadot network also faced serious challenges in 2022. According to the report, interest in the ecosystem had waned after users were flooded to participate in the Parachain slot auctions in November.

It suggested that the Layer 1 protocol “needs a spark” such as the development of “new primitives leveraging cross-chain architecture and XCM communications” to attract users back. Also the mainWallet of the network, the Polkadot JS wallet, has been criticized by users for its general functionality.

The report finally pointed out that the uniqueness of the architecture has led to misunderstandings and misunderstandings that prevent wider adoption of the network.

Source: Crypto News Deutsch

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