According to a Messari reportthe Polkadot (DOT) blockchain protocol made significant progress in the first quarter (Q1) of the year in terms of market capitalization, revenue and Cross-Consensus Message Format (XCM) activity, as well as a record increase in daily active addresses.
DOT’s market cap is up 16% quarter-on-quarter
During the fourth quarter of 2023, Polkadot’s market capitalization saw a remarkable increase of 111% quarter-over-quarter (QoQ), reaching $8.4 billion. Building on this momentum, the first quarter of 2024 saw a further 16% quarter-on-quarter increase, boosting circulating market capitalization to $12.7 billion.
Despite these gains, DOT’s market cap remains 80% below its all-time high of $55.5 billion set on November 8, 2021.
In Q4 2023, Polkadot’s revenue also shot up 2,880% quarter-over-quarter to $2.8 million. According to the report, this increase was mainly attributed to an exponential increase in extrinsic features, driven by the Polkadot inscriptions.
However, turnover statistics for Q1 2024 fell significantly on a QoQ basis, with USD sales down 91% to $241,000 and DOT sales down 92% to 28,800. It is worth noting that Polkadot’s revenues tend to be relatively lower compared to its competitors due to the structural design of the network.
Polkadot’s XCM activity continued to grow in the first quarter of 2024. Daily on a quarterly basis, with an average of 185 daily transfers.
The total number daily XCM posts grew 94% quarter-over-quarter to 2,800, demonstrating the network’s dynamic ecosystem. Additionally, the number of active XCM channels grew 13% quarter-over-quarter to a total of 230.
Polkadot’s Parachain network is soaring to new heights
The first quarter of 2024 marked a significant start to the year for Polkadot’s parachains, with active addresses reaching a level highest ever of 514,000, representing a substantial quarter-on-quarter growth of 48%.
Moonbeam emerged as the leading parachain with 217,000 monthly active addresses, a solid 110% quarter-over-quarter increase. Nodle followed closely with 54,000 monthly active addresses, doubling from the previous quarter.
Astar, on the other hand, saw modest growth of 8% quarter-on-quarter, reaching 26,000 active addresses, while Bifrost Finance grew slightly by 2% quarter-on-quarter to 10,000 addresses. However, Acala saw a decline, with the number of monthly active addresses dropping to 13,000, a 16% quarter-over-quarter decline.
In particular, the Manta Network stood out among parachains in the first quarter of 2024, with a significant increase in the number of daily active addresses, up to 15,000. According to Messari, this increase was driven by the successful launch of the MANTA token TGE and its subsequent listing on Binance, which increased Manta’s Total Value Locked (TVL) to over $440 million.
Polkadot Price sees upside potential in the future
In terms of price action, Polkadot’s native token DOT has regained bullish momentum after falling sharply to the $5.8 price after hitting a yearly high of $11 on March 14.
Currently, DOT has regained the $7.25 level, up 7% in the past week. However, according to CoinGecko, DOT trading volume is down slightly by 4.7% compared to the previous trading session, amounting to $320 million in the last 24 hours. facts.
If the bullish momentum continues, Polkadot will face its first resistance at the $7.4 zone, which serves as the final threshold for a possible retest of the $8 resistance wall.
On the other hand, the $6.4 support floor has proven successful after being tested for two consecutive days this week, highlighting its importance as a key level to watch for the token’s upside movement prospects.
Featured image from Shuttestock, chart from TradingView.com
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