The report shows 130M DOT is locked in Parachains as of the first quarter of this year but the latest launch of the XCM cross-consensus messaging will optimize the communications so let’s read more today in our latest cryptocurrency news.
Crypto analytics company Messari published a report on the Q1 performance of Polkadot and outlined the layer-zero protocol’s price action, the network usage, and the latest developments in decentralization and staking. The report shows 130M DOT is locked in parachians and that Polakdot completed 13 parachain slot auctions with a total of 127.9 million DOT worth $2.9 billion and about 11% of hte total supply being bonded. 28 more parachain slot auctions were scheduled for February 2023 and made the total number 41.
The active and the new accounts decreased in the same period as the growth of the parachains confirmed the steady progress in the ecosystem. After the protocol approved the first parachain slot auction, a year ago, DOT reached a new high of $55.08 but since then, the asset’s price was tradign downwards along with the rest of the market. The report attributed the drop of these accounts to the users locking their coins to support their parachains in a slot auction because DOT locked in a crowd loan and can’t be withdrawn for use in other applications.
In the meantime, over the Q1 of 2021, the number of addresses holding DOT increased which only indicates a growing interest in the ecosystem despite the market being bearish. By adopting the Nominated Proof of Stake consensus mechansim designed to decentralize the network’s validator set, DOT had 294 of 297 of the validators getting 1.8 to 2.6 million DOT staked. It’s considered a form of healthy validator distribution by the total stake which is a success in decentralizing the overall power because the mainstream incentivizes the nominators to stake the lower-staked validators and earn higher rewards.
The number of working developers is a critical metric that evaluates the robustness of the ecosystem and the report also noted that the first quarter saw a 10% drop in average monthly developer activity as the developers prioritized enabling previously deployed features rather than developing new features. It also noted that the Polkadot developer activity remains at the top in crypto only behind Ethereum.
The Polkadot network faced serious challenges in 2022 and the report also noted that in the ecosystem, it dropped after users flooded for partaking in the parachain slot auctions. It suggested that the layer one protocol needs s park-like development and new primitive cross-chain architecture and XCM communication to attract the users again. And the network’s main wallet, Polkadot JS Wallet was criticized by the users for the general functionalities and finalized that the very unique architecture led to misunderstandings and misconceptions which deter the wider adoption of the network.
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