Polkadot Q1 Shock: Good News for User Growth, But Bad for…
- Polkadot experienced a surge in demand in Q1
- However, despite the peak in demand, revenues fell sharply
Layer-0 blockchain Polkadot [DOT] Messari’s latest report revealed a significant increase in user activity in the first quarter of this year.
According to the report, demand for Polkadot’s Relay Chain and parachains reached new heights, but this did not translate to an increase in network revenue, which experienced a significant decline during the same period.
Key Highlights from Q1:
In Q1, Polkadot’s Relay Chain saw a rise in the number of returned addresses and newly created addresses, representing a 9% and 23% increase, respectively, from the previous quarter.
Additionally, Messari reported a record 48% increase in the number of active parachain addresses, with individual parachains such as Moonbeam, Nodle, Astar, and Bifrost experiencing a surge in user demand.
However, despite the growth of the network, revenue generated from transaction fees saw a significant drop in Q1, totaling $241,000 – a 91% decrease from Q4 2023. Messari attributed the sharp decline to several factors, including a decrease in extrinsics and Polkadot inscriptions.
