Almost 130 Million Polkadot (DOT) Locked in Parachains as of Q1 2022, Report

Messari, a crypto analytics resource, published a report about Polkadot’s Q1 performance. It highlighted the price action of Polkadot, network usage, and future possibilities.

According to the paper, Polkadot had successfully concluded 13 parachain slots auctions. This totaled $2.9 billion at Q1’s close and approximately 11% of total supply – bond. There are also 28 additional parachain slots auctions scheduled for February 2023, making it 41.

Despite the decline in active and new accounts over the same time, the steady growth of parachains is a sign of the ecosystem’s progress.

Decentralized Staking

DOT was at $55.08 a day after protocol approved the parachain slot auction scheduled for Nov. 11. The asset’s value has fallen since then. According to the report, users locked their DOT in order to support their parachain(s), in a slot-auction auction. This was because the DOT had locked in a “crowd loans” that cannot be withdrawn to use in other applications.

Despite the bearish market, there has been a steady increase in addresses that hold DOT over the first quarter of 2021.

Polkadot adopted the Nominated Proof of-Stake consensus mechanism to decentralize its validator set. 294 of 297 validators (99%) were able to stake 1.8-2.6million DOT by adopting the NPoS consensus mechanism.

It can be described as a healthy validator distribution by the total stake. This is a successful decentralization of overall power. The mechanism incentivizing nominators stake with lower staked validators to receive higher rewards.

It is also important to measure the strength of an ecosystem’s ecosystem by the number of developers who are currently working. According to the report, there was a 10% decrease in developer activity during Q1 2022. This is because developers tended to focus on enabling existing features and not developing new ones.

It was concluded that Polkadot’s development activity is still at the top of crypto, only trailing Ethereum.

Ecosystem Challenges

Also, the Polkadot network faced significant challenges when it tried to enter 2022. According to the report, interest in the ecosystem has declined since November’s flood of users who wanted to participate in the parachain slots auctions.

The layer one protocol needed a “spark”, such as the development of “a new primitive(s), utilizing cross-chain architecture, and XCM communications” to attract users. Users have also criticized the network’s main wallet Polkadot JS wallet for its limited functionality.

Finally, the report pointed out that the uniqueness and complexity of the architecture had led to misunderstandings and misunderstandings that have prevented wider adoption of the network.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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