Messari Q1 2024 Polkadot Status Report Summary

Key Points of the Report

• The number of daily active addresses in the Polkadot ecosystem reached 514,000, setting a new historical high, with a month-on-month growth of 48% and a six-month growth of 192%. Moonbeam continues to lead, while Manta Network shows the most significant growth.

• The volume of XCM messages increased by 94% month-on-month, and grew by 314% over the past six months. The number of XCM messages and channels has consistently increased each quarter over the past year.

• Gavin Wood proposed a future development plan for Polkadot, introducing the Join-Accumulate Machine ( JAM ). JAM integrates the characteristics of Ethereum and Polkadot, aiming to enhance scalability and performance while maintaining resilience.

• The referendum 457 aims to diversify the Polkadot treasury by introducing USDT and USDC, and allowing treasury proposals to be denominated in stablecoins. This referendum plans to use the DCA feature of a certain DEX to exchange 3.4 million DOT.

Key Indicators

Financial Analysis

• In the first quarter of 2024, the circulating market value of DOT increased by 16% quarter-on-quarter, reaching $12.7 billion. From the bear market low, DOT has risen by 270%. At the end of this quarter, it ranked 16th among all crypto protocols.

• In the first quarter of 2024, the revenue indicators fell sharply compared to the previous quarter. The USD-based revenue was $241,000(, a decrease of 91%) from the previous quarter, and the DOT-based revenue was 28,800 DOT(, a decrease of 92%). Compared to the third quarter of 2023, USD-based revenue increased by 249%, and DOT-based revenue increased by 97%.

supply

• As of the end of the first quarter of 2024, Polkadot's staking rate is 52%.

• DOT adopts an inflationary monetary policy with no maximum supply. Its monetary policy is determined by the degree of alignment with the ideal staking rate.

Treasury

• As of the end of the first quarter of 2024, the Polkadot treasury holds approximately 37 million DOT( valued at $347 million). This is a decrease of 5.3% in USD terms and a decrease of 16% in DOT terms compared to the previous quarter.

Network Analysis

usage

• In the first quarter of 2024, the return addresses reached 8,200(, a quarter-on-quarter increase of 9%), with a total of 3,100( new addresses, a quarter-on-quarter increase of 23%), bringing the active addresses to 11,300(, a quarter-on-quarter increase of 12%).

• In the first quarter of 2024, the average daily extrinsic volume remains unchanged.

Development

• According to data from a certain data platform, Polkadot had an average of nearly 2,100 developers in December 2023, of which 792 were full-time, making the ecosystem rank second, only after Ethereum.

Decentralization and security

• The active set of validators on Polkadot has remained stable at 297 for many years.

• The average Satoshi coefficient in the first quarter of 2024 is 93, higher than other major networks.

Governance

• Since the launch of OpenGov, governance activities have significantly increased. The number of referendums has risen to 217, an increase of 5% month-on-month and a growth of 57% over the past six months.

Ecosystem Analysis

XCM

• In the first quarter of 2024, daily XCM transmissions reached 2,700 times, an increase of 89% compared to the previous period. The total daily XCM messages were 2,800 times, an increase of 94%, which is a growth of 314% compared to the third quarter of 2023.

Parallel Chain

• In the first quarter of 2024, 8 parallel chain auctions were held, bringing the total to 66. These auctions bound 1 million DOT, setting the highest amount since the second quarter of 2022.

• In the first quarter of 2024, the number of active addresses on parallel chains reached a historical high of 514,000, representing a 48% increase compared to the previous quarter.

• In the first quarter of 2024, the average number of parallel chain transactions was 11.8 million per month, a decrease of 34% month-on-month.

Roadmap

• Polkadot has completed and shared the official release of Polkadot 1.0, marking the completion of the Polkadot white paper.

• The community believes that Polkadot 2.0 will be decided by community discussion and consensus. Gavin Wood has proposed some ideas, such as providing a more flexible and capital-efficient mechanism for allocating block space.

• The core technology focuses of Parity include Agile Coretime, on-demand parachains, bridges to Ethereum, and the Kusama bridge, among others. New technologies expected to launch in 2024 include Elastic Scaling and JAM.

Summary

In the first quarter of 2024, the Polkadot ecosystem's active addresses and XCM messages both reached historical highs. Key developments include the introduction of JAM, treasury diversification proposals, and integration with the IBC ecosystem. Looking ahead, the development of Polkadot 2.0 and the advancement of new technologies indicate a promising year ahead for Polkadot.