Messari, a crypto analytics resource, released a study on Polkadot’s Q1 performance, describing the layer-zero protocol’s price action, network usage, recent advancements in staking and decentralisation, and future possibilities.
Polkadot has successfully conducted 13 parachain slot auctions, with a total of 127.8 million DOT bonds – worth $2.9 billion (at the end of Q1) and representing around 11% of total supply. Additionally, 28 further parachain slot auctions are planned until February 2023, bringing the total to 41.
Although the number of active and new accounts has fallen during the same time period, the expansion of parachains confirms the ecosystem’s consistent evolution.
On November 11, a day after the protocol allowed the first parachain slot auction, DOT hit ATH at $55.08. However, the asset’s price has been declining in line with the larger market since then. The decline in active accounts was attributed to users locking their DOT to support their selected parachain (s) in a slot auction since DOT locked in a “crowd loan” cannot be withdrawn for usage in other apps.
Meanwhile, the number of addresses owning DOT has continuously climbed during the first quarter of 2021, demonstrating a steady rising interest in the ecosystem despite the market remaining bearish.
Polkadot used the Nominated Proof-of-Stake (NPoS) consensus process to decentralise the network’s validator set, with 294 of 297 validators (99%) receiving 1.8–2.6 million DOT staked.
