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Nearly 130 Million Polkadot (DOT) Locked
Polkadot

Nearly 130 Million Polkadot (DOT) Locked in Parachains as of the first quarter of 2022

In the report, the latest XCM of the leading web3 protocol It was stated that the launch will optimize cross-chain communication.

Crypto analytics resource Messari has released a report on Polkadot’s Q1 performance outlining the price action of the layer zero protocol, network usage, the latest developments in staking and decentralization, and the possibilities ahead.

The report states that Polkadot has successfully completed 13 parachain slot auctions, worth a total of $127.8 million DOT – $2.9 billion, about 11% of the total supply being tied. In addition, 28 parachain slot auctions are planned until February 2023, with the total number reaching 41.

The stable progress of the ecosystem is the main reason for the growth of parachains.

Decentralized Staking

One day after the protocol approved the first parachain slot auction for November 11 last year, DOT reached ATH at $55.08. But since then, the price of the asset has been trading downwards along with the broader market. The report attributed the decline of active accounts to users locking down their DOT to support the parachain(s) they wanted in a slot auction, because the DOT was locked in a “crowd loan” and could not be withdrawn for use in other applications.

During the first quarter of 2021, there was a steady increase in the number of addresses holding DOT. This shows the constantly increasing interest even though the market is in a downward trend.

By adopting the Nominated Proof-of-Stake (NPoS) consensus mechanism designed to decentralize the network’s validator set, Polkadot has 294 (99%) out of 297 validators staked in 1.8–2.6 million DOTs.

It is considered a form of healthy validator distribution by total stake – an achievement of decentralizing overall power due to the mechanism that encourages candidates to buy shares with lower stakes validators to earn higher rewards.

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The number of developers working is quite significant. “The first quarter of 2022 saw a 10% decrease in average monthly developer activity, as developers prioritized activating previously deployed features over developing new features.”

Only Etherium was followed in Polkadot’s developer event.

Ecosystem Challenges

Interest in its auctions has waned as the Polkadot network also enters 2022.

He suggested that layer one protocol “needs a spark”, such as developing “a new primitive(s) that uses cross-chain architecture and XCM communication” to attract users again. In addition, the main wallet of the network, the Polkadot JS wallet, was criticized by users.

At the end of the report, he pointed out that the uniqueness of the architecture has led to misunderstandings and misunderstandings that hinder wider adoption of the network.

Nearly 130 Million Polkadot (DOT) Locked in Parachains as of the first quarter of 2022

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About Hama Amefiz

Amefiz is a professional blockchain, cryptocurrency and tech journalist, regular contributor to newsbsc.com who is writing analysis about the latest developments in the cryptocurrency and blockchain space.

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