The first quarter of 2024 marked a significant period of progress for the Polkadot (DOT) blockchain protocol. According to a recent Messari report, Polkadot experienced notable growth in terms of market capitalization and revenue during this time. In Q4 2023, the platform’s market capitalization saw a remarkable 111% quarter-on-quarter (QoQ) increase, reaching $8.4 billion. Building on this momentum, Q1 2024 witnessed a further 16% QoQ rise, elevating the circulating market cap to $12.7 billion. Despite these gains, DOT’s market capitalization remains 80% below its all-time high of $55.5 billion, which was achieved on November 8, 2021.
While Polkadot’s revenue surged by 2,880% in Q4 2023 to reach $2.8 million, revenue metrics for Q1 2024 showed a significant decline on a QoQ basis. Revenue in USD dropped by 91% to $241,000, and revenue in DOT decreased by 92% to 28,800. This decrease in revenue was primarily attributed to the network’s structural design, which tends to result in relatively lower revenue compared to its competitors.
Polkadot’s XCM activity continued to show growth in Q1 2024, demonstrating the network’s evolving ecosystem. Daily XCM transfers surged by 89% QoQ to reach 2,700, while non-asset transfer use cases, referred to as “XCM other,” experienced a 214% QoQ increase, averaging 185 daily transfers. The total number of daily XCM messages grew by 94% QoQ to 2,800, indicating the network’s increasing activity and engagement. Additionally, the number of active XCM channels grew by 13% QoQ to a total of 230, further showcasing Polkadot’s expanding reach and utility.
Q1 2024 marked a significant start to the year for Polkadot’s parachains, with active addresses reaching an all-time high of 514,000, representing a notable 48% QoQ growth. Among the parachains, Moonbeam emerged as the leading player with 217,000 monthly active addresses, marking a solid 110% QoQ increase. Nodle followed closely with 54,000 monthly active addresses, doubling from the previous quarter. Astar experienced an 8% QoQ growth to reach 26,000 active addresses, while Bifrost Finance saw a slight 2% QoQ growth to 10,000 addresses. However, Acala faced a decline, with monthly active addresses falling to 13,000, down 16% QoQ. Notably, the Manta Network stood out among parachains in Q1 2024, with a significant surge in daily active addresses, reaching 15,000. This growth was attributed to the successful launch of the MANTA token TGE and subsequent listing on Binance, boosting Manta’s Total Value Locked (TVL) to over $440 million.
In terms of price action, Polkadot’s native token DOT regained bullish momentum in Q1 2024 after a sharp drop to the $5.8 price mark following a yearly high of $11 on March 14. Currently, DOT has surpassed the $7.25 level, showing a 7% increase over the past week. However, DOT’s trading volume experienced a slight decline of 4.7% compared to the previous trading session, amounting to $320 million over the past 24 hours according to CoinGecko data. If the bullish trend persists, Polkadot faces its first resistance at the $7.4 zone before potentially retesting the $8 resistance level. On the other hand, the $6.4 support floor has proven to be strong, with successful tests on two consecutive days, highlighting its significance as a key level for monitoring the token’s upward movement prospects.
The first quarter of 2024 was a period of significant growth and development for the Polkadot blockchain protocol, with improvements in market capitalization, revenue, XCM activity, and parachain growth. Despite facing challenges in revenue metrics, Polkadot’s expanding ecosystem and engagement indicate a promising trajectory for the platform’s future success.
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