DOT’s circulating market capitalization reached 11 billion during the fourth quarter of 2023.
Polkadot, the computing platform known for its interoperability and scalability, has shown notable growth in key metrics during the latter part of 2023, as outlined in a recent report from Messari.
Outpacing Crypto Market Growth
According to Messari’s findings, Polkadot’s circulating market capitalization saw a remarkable quarter-over-quarter (QoQ) growth of 111%, reaching an impressive $8.38 billion. This growth exceeded the overall crypto market growth of 54% during the same period.
Furthermore, Polkadot’s year-on-year (YoY) change reached 94%, consolidating its position among the top 15 crypto projects by market capitalization.
In terms of revenue, Polkadot witnessed a substantial increase of 2,880% QoQ, generating $2.8 million in Q4 2023. This increase was mainly attributed to the significant increase in extrinsics, driven by the introduction of Polkadot signups.
Messari suggests that even excluding the four-day increase in Enrollments, Polkadot’s revenue would have doubled from the previous quarter, and it tends to be relatively lower compared to its competitors due to its network structural design.
Polkadot Witnesses Significant Increase in Active Addresses
Following the launch of OpenGov (the in-network governance module and framework) in June, the Polkadot relay chain saw an increase in account activity, largely due to increased participation in governance.
As Relay Chain is instrumental in facilitating governance processes, it saw a surge in active addresses on October 24, when users claimed their locked DOT tokens from the first batch of parachain auctions held two years earlier.
During Q4 2023, the Polkadot relay chain averaged over 10,000 daily active addresses, representing a substantial 90% increase quarter-over-quarter. Excluding the October 24 activity related to claiming DOT tokens, the average number of active addresses still saw a significant 70% increase in the quarter, reaching 9,000.
Additionally, cross-chain message (XCM) transfers on the platform increased 150% quarter-on-quarter, reaching an all-time high of 133,000. The total number of active XCM channels almost tripled in 2023, reaching 203 by the end of the year.
According to Electric Capital 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 network expansion, the price of Polkadot’s native token DOT has not followed suit and has even seen declines over longer time periods despite positive developments.
Currently, DOT is trading at $6.7420, representing a slight price increase of 0.3% in the last twenty-four hours, along with a gain of 9% year-to-date. However, over the last fourteen and thirty days, the token has recorded a price drop of 6% and 22%, highlighting the absence of bullish momentum and catalysts that could push DOT to higher levels.
Although it reached a 19-month high of $9.5711 on December 26, the subsequent price decline has brought DOT to a critical juncture, potentially erasing its gains from last year.
If the current level and its nearest support at $6.3229 fail to stop further price declines, DOT could fall to the $5.4830 level, which serves as the next major support on the token’s 1-day chart.
On the contrary, if DOT breaks its overhead resistance at $7.0392, the next target would be to break the short-term downtrend structure, facing the resistance at $7.5332 and another resistance at $8.1631. This would pave the way for another consolidation phase at its 19-month high.
By Audy Castaneda
