Polkadot’s Network Usage Remained Consistent in Q2 Despite Market Downturn: Report

Messari, a blockchain analytics platform, has published a comprehensive report on Polkadot’s performance in Q2, 2022. It analyzes different aspects of the protocol including market valuation, developer activity and ecosystem challenges.

Polkadot’s Value Dropped 66% In Q2

The “State of Polkadot” paper revealed that the native crypto asset of the blockchain project was shredded by 66% of its market capital in just three months.

Polkadot ended the quarter with a valuation of $7.9 billion, down from $15 billion in Q1. This represents an 86% decrease from the market cap of $49billion in November 2021, which was its all-time peak (ATH).

Polkadot also noted that, despite the huge slump in valuations, there have been positive developments in certain aspects of its ecosystem including network usage and developer activity.

Strong Network Usage

Messari noted that Polkadot’s network usage was strong in Q2 2022, despite the huge correction in the price DOT (Polkadot’s native currency).

Although user accounts were almost constant, there was a 30% increase in active monthly users on the network. In Q2, the project had 145,000 monthly users, with 77,000 active users and 68,000 new users. This compares to Q1’s 149,000 and 56,000 monthly active users.

The value of DOT token transfers during each quarter demonstrates the consistency in user counts. Polkadot averaged 293 million DOT token transfers per month in Q2, slightly higher than the 288 millions DOT transfers in quarter 1.

In the second quarter 2022, Polkadot was home to an estimated 435,000 users and 878 million DOT tokens.

Increased Developer Activity

The report showed that Polkadot had a lot of developer activity during the second quarter 2022, in addition to the positive network usage.

The protocol was the second-largest developer community in 2021. In Q2 2022, there was consistent developer activity, with an average 11,000 events per month. Messari says that this metric on Polkadot is still one of the most powerful in crypto industry.

Gavin Wood, the creator of Polkadot, presented a proposal last month for the next generation governance for the DOT ecosystem.

Polkadot’s challenges

In the report, there were also some issues that plagued Polkadot’s network during Q2. Despite strong network usage and developer activity, the other metrics were markedly lower than their previous highs.

Messari suggested that “developing a new functionality and use case” could help resuscitate user interests and increase activities on Polkadot. This is especially true now that the network has enabled XCM cross-chain asset transfers.

The report also stated that Polkadot should continue to grow and connect more parachains into XCM, while still retaining its developer activity dominance.

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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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