- Polkadot’s network activity increased in the fourth quarter of 2023.
- Revenues also increased significantly.
Layer 0 blockchain network Polkadot [DOT] ended the fourth quarter of 2023 with a strong increase in user activity, Messari found in a new report.
In its report titled ‘State of Polkadot Q4 2023’, the on-chain data provider found that Polkadot’s base layer – Relay Chain – witnessed a 94% spike in average daily active addresses during the last quarter.
Polkadot’s Relay Chain, whose primary function is to validate and secure the parachains on the network, averaged more than 10,000 active addresses per day.
There was also a significant increase in new demand for Polkadot in the fourth quarter of 2024. According to Messari, the network’s Relay Chain recorded a 116% increase in new addresses between October and December 2023.
This marked an 8% increase in new demand for the blockchain network year-on-year.
Source: Messari
The last quarter of 2023 saw an unprecedented increase in the value of various crypto assets. Polkadot’s own coin DOT benefited from the same, as its circulating supply grew by more than 100% during the period.
Messari found,
“DOT’s circulating market cap rose 111% quarter-over-quarter to $8.38 billion, more than double the crypto market’s overall growth of 54%. This fourth-quarter growth brought DOT’s year-over-year change to 94%. DOT’s market cap is in the top 15 of all crypto projects.”
Additionally, Polkadot recorded a 2,880% increase in quarterly revenue. For context, during the 90-day period, the network’s revenues totaled $2.8 million.
In the previous two quarters, Polkadot’s revenue was $97,500 and $94,200, respectively.
Messari noted that Polkadot’s astronomical increase in sales in the fourth quarter of 2023 was due to activity around inscriptions on the chain.
Messari found that there was a four-day boom in Polkadot inscription activity between December 20 and 23, with the Relay Chain processing an average of 4.3 million daily extrinsic data.
Source: Messari
Declining interest in DOT transactions
At the time of writing, DOT was trading at $6.65. According to data from CoinMarketCapthe value of the currency has fallen by 18% in the past month.
This price drop has resulted in a corresponding drop in Futures Open Interest, AMBCrypto found.
Realistic or not, here is DOT’s market cap in BTC terms
Dates of Mint glass showed a 19% decline in DOT Open Interest since the beginning of the year. At the time of writing, the coin’s Open Interest stood at $215 million.
When an asset’s Open Interest craters in this way, it means traders are exiting their positions without opening new ones.