Polkadot (DOT) Q4 2022 Performance Overview
Despite the FTX exchange collapse that had an impact on the entire crypto industry, the latest performance report of Polkadot (DOT) for Q4 2022 shows growth. Messari’s report highlights an increase in daily active accounts by 64% and new accounts by 49%.
Quarterly Financial Stability
Despite a 31% decline in market capitalization from the previous quarter and a 83% decrease year-on-year, Polkadot’s other financial data remained stable. Revenue remained unchanged, and the DOT token supply increased as expected. In November 2022, the Web3 Foundation reported that the DOT token, initially offered as a security, was no longer considered a security after three years of discussions with the Securities and Exchange Commission (SEC).
Polkadot’s Impressive Growth
The data analysis of the Polkadot Relay Chain showed significant growth over the previous quarter of 2022. This growth is attributed to users moving away from FTX and seeking more open, transparent, and decentralized networks such as Polkadot, the launch of USDT, and the launch of nomination pools.
The Cross-Consensus Message Format (XCM) among Parachains
Polkadot’s ecosystem also includes the Cross-Consensus Message Format (XCM), which facilitates communication between parachains. XCM messages can be transmitted through HRMP channels between parachains and even outside the Polkadot ecosystem to other applications and base layers. Launched in May 2022, XCM has already transmitted over 166,000 transfers through 70 channels. The next iteration, XCM V3, is expected to introduce new features, including enhanced programmability, connection to external networks, cross-chain blocking, improved fee payments, and NFTs.
The Parachain Slot Auctions
The high anticipation leading up to the launch and favorable market conditions resulted in a high amount of DOT being locked. 35 slots have been won, with a total of 133 million DOT (10.5% of total supply) locked, and slot auctions are currently scheduled until February 2023. The Polkadot network has the capacity to support up to 100 parachains, with the potential to increase in the future.
DOT’s Market Performance and Latest Project News
DOT currently ranks 12th in the crypto market with a market capitalization of over $7.6 billion. While its current price of $4.32 is far from its all-time high of over $53 in November 2021, Polkadot continues to share news from projects running on its blockchain and parachains, such as Kilt Protocol, Efinity metaverse, Aleph Zero, and more.