Polkadot had a steady run in the first quarter of 2023, with its market cap up 51% quarter on quarter. Despite this, DOT posted a 5.6% loss over the past three months
Polka dots [DOT] its performance in the first quarter of 2023 has been a mixed bag. Though it forged high-profile partnerships to expand its reach, DOT failed to make a mark on the charts.
Read Polka Dots [DOT] Price Forecast 2023-24
Consider This – While most major cryptos like Bitcoin [BTC] and Ethereum [ETH] accumulated impressive gains, DOT lost 5.6% of its value in the past three months, data from CoinMarketCap revealed. In fact, the token registered a steeper decline last week as it dropped more than 11% to its press price of $5,915.
Polka dot in Q1 2023
Blockchain analytics firm Messari released a detailed report on Polkadot’s performance in the first quarter (Q1) of 2023.
One of the highlights was the network’s fast-growing developer ecosystem. Since 2018, Polkadot’s full-time developer count has increased more than 16 times, reaching over 750 by the end of Q1 2023. Polkadot’s total developer count also grew 2% YoY (YoY).
The report’s findings were corroborated by ProofofGitHub, with the same revealing that the chain was the third most actively developed network as of April 21.
GitHub daily development activity:
#1: 1397 Vega Protocol
#2: 775 Cardano
#3: 695 Polka Dot / Kusama
#4: 639 internet computer
#5: 624 status
#6: 531 Hedera
#7: 450 Decentraland
#8: 427 Cosmos
#9: 387 IOTA
#10: 372 Uniswap pic.twitter.com/ffuxZjOIUo
— ProofofGitHub (@ProofofGitHub) April 21, 2023
Turning to the financials, Polkadot posted a steady run in the first quarter of 2023 – with market cap up 51% quarter on quarter (QoQ) and revenue growing 28% quarter on quarter.
The report also underlined the growing adoption of the cross-consensus message format (XCM), as the number of XCM channels increased by 60% quarter on quarter. Introduced in May 2022, XCM has greatly aided Polkadot’s interoperability with parachains and other consensus-based systems.
The total number of parachains reached 41, with six new additions in Q1. However, Polkadot’s parachain closing auctions recorded a sustained decline in the total number of DOT bonds. Parachains are a type of blockchain with enhanced capabilities, including interaction with the relay chain and communication between parachains.
Expansion of the NFT landscape
Polkadot’s NFT ecosystem continues to make tremendous progress.
For example, Mandala Metaverse announced the release of its Cryptonauts NFT collection on the Astar Network, Polkadot’s decentralized application layer.
— Polkadot (@Polkadot) April 21, 2023
The booming landscape was underlined by Santiment’s datasets, which showed a phenomenal increase in NFT sales volume and transactions on the Polkadot network in April.
Realistic or not, here is the DOT market cap in terms of BTC
DOT’s bearish sentiment is gaining momentum
In derivatives, the number of open trading positions, or Open Interest (OI), fell 1.89% over the past 24 hours.
In addition, funding rates, which represented the cost of holding bullish long or bearish short positions, turned negative on many exchanges. This is a sign that more investors are now positioned for price losses.
This post How did Polkadot [DOT] rate in Q1 2023? Here’s everything you need to know
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