Polkadot (DOT), one of many distinguished blockchain networks within the crypto area, skilled a 16% decline in market capitalization within the third quarter (Q3) of 2023, in line with a current report from Messari.
This decline got here after a reasonable downturn within the general cryptocurrency market throughout Q3, regardless of favorable courtroom rulings for XRP and Grayscale. The entire crypto market capitalization declined by 5.8%, with Bitcoin (BTC) and Ethereum (ETH) falling by 7.5% and 10.0%, respectively.
Polkadot Closes Q3 With $5.2 Billion Market Cap
As reported by Messari, Polkadot’s market capitalization closed at $5.2 billion, positioning it because the thirteenth largest crypto asset by market cap in Q3 2023 (at present fifteenth).
Polkadot’s monetary construction is predicated on a weight-based charge mannequin, which differs from the gas-metering mannequin in different networks, akin to Ethereum.
Transaction charges in Polkadot are decided and charged earlier than execution, with the calculation comprising a weight charge reflecting computational sources, a size charge primarily based on transaction measurement, and an non-obligatory tip to incentivize block authors.
In Q3 2023, Polkadot generated income amounting to $94,000, representing a 3% lower in comparison with the earlier quarter. Messari means that Polkadot’s income tends to be comparatively decrease in comparison with its rivals because of the community’s structural design.
Then again, the native token of Polkadot, DOT, serves three main functions: governance, staking, and parachain bonding. Throughout Q3 2023, the staking share of DOT rose by 12% in comparison with the earlier quarter, reaching 49%.
This enhance led to lowered staking rewards and a 12% decline within the annualized nominal yield to fifteen%. In line with Messari, the shut alignment of Polkadot’s staking charge with the best charge demonstrates the effectiveness of its mechanism.
Polkadot’s OpenGov Milestone
The Polkadot treasury supported varied initiatives in Q3, together with software program improvement, bounties, consumer upgrades, and neighborhood occasions like meetups and hackerspaces.
In line with Messari, the implementation of OpenGov on June 15 marked a major milestone, revolutionizing treasury administration and enabling concurrent proposals with distinct necessities. On the finish of the quarter, the Polkadot treasury held roughly 45 million DOT ($185 million).
Moreover, Polkadot has not too long ago accomplished the official launch of Polkadot 1.0, marking the achievement of a major milestone outlined within the Polkadot whitepaper.
The community’s codebase has been totally transitioned to a repository managed by the neighborhood by way of Polkadot OpenGov and the Technical Fellowship. The roadmap for the following iteration, Polkadot 2.0, might be decided by way of neighborhood discussions and consensus.
Founder Gavin Wooden has proposed concepts for extra mechanisms to allocate Polkadot’s block area and for creating treaty-like agreements between a number of blockchains known as “accords.”
As of this writing, the DOT token has exhibited a noteworthy upward pattern since October 19, carefully following Bitcoin’s lead. Presently, the token is buying and selling at $4,839, reflecting a notable enhance of over 16% inside the previous fourteen days.
Featured picture from Shutterstock, chart from TradingView.com