Polkadot (DOT) float Market Cap soars to $8.3 billion, up 111%
As stated in a recent report, Polkadot, a computing platform known for its interoperability and scalability, has shown significant growth on key metrics in the second half of 2023. According to the survey results, Polkadot's outstanding Market Cap increased by 111% month-on-month to an impressive $8.38 billion.
This growth outpaced the 54% growth of the Crypto Assets market as a whole over the same period. In addition, Polkadot's year-over-year change reached 94%, cementing its position among the top 15 Crypto Assets projects by Market Cap. This growth outpaced the 54% growth of the Crypto Assets market as a whole over the same period. In addition, Polkadot's year-over-year change reached 94%, cementing its position among the top 15 Crypto Assets projects by Market Cap.
In terms of revenue, Polkadot grew significantly by 2,880% sequentially, reaching $2.8 million in revenue for the fourth quarter of 2023. This growth is primarily attributed to significant external growth driven by the introduction of Polkadot Inscriptions.
The data says that even excluding the four-day peak in Inscriptions, Polkadot's revenue will double from the previous quarter. It's worth noting that due to the structural design of its network, Polkadot tends to have relatively low revenues compared to its competitors.
Following the launch of OpenGov (the governance module and framework within the network) in June, the Polkadot Relay Chain saw a surge in account activity, largely due to increased governance engagement. Because Relay chain is critical to facilitating the governance process, it experienced a surge in active Address on October 24, when users claimed their locked DOT Token from the first parachain auctions held two years ago.
Throughout the fourth quarter, the Polkadot Relay Chain averaged more than 10,000 daily active addresses, a significant 90% increase quarter-over-quarter. Excluding DOT Token-related activity on Oct. 24, the average number of active Address still increased by 70% month-over-month to 9,000. In addition, Cross-Chain Interaction (XCM) transfers on the platform increased by 150% month-over-month to an all-time high of 133,000. In 2023, the total number of active XCM channels almost tripled, reaching 203 by the end of the year.
According to Electric Capital's ranking, Polkadot has 800 full-time developers and 2,100 total developers, making it one of the most engaged crypto ecosystems among developers.
DOT price performance is mixed. Despite the significant growth in key metrics that show the expansion of the network, the price of Polkadot's native TokenDOT has not followed suit and has even experienced a positive development and even a decline over a longer period of time.
Currently, DOT is trading at $6.7420, with a modest 0.3% increase in the price over the past 24 hours and a 9% year-to-date gain.
However, over the past 14 and 30 days, the Token's price has fallen by 6% and 22%, highlighting the lack of bullish momentum and catalysts that could propel DOT to higher levels.
Although it hit a 19-month high of $9.5711 on December 26, the subsequent price drop has brought DOT to a critical moment that threatens to erase past year gains.
If the current level and its nearest support level of $6.3229 fail to prevent the price from falling further, the DOT could fall to the $5.4830 level, which is the next major support level in the Token's 1-day chart.
Conversely, if the DOT breaks above its upper resistance at $7.0392, the next target will be to break the short-term downtrend structure, facing the $7.5332 resistance and another resistance at $8.1631. This will pave the way for another consolidation phase at the 19-month high.
(Source: Ronaldo Marquez)
