Record-Breaking Q1 For Polkadot: Daily Active Addresses Surge to 514,000 While DOT Price Rises 7%
According to a recent report by Messari, Polkadot (DOT) had a successful first quarter (Q1) of the year with significant growth in market capitalization, revenue, Cross-Consensus Message Format (XCM) activity, and a record-breaking increase in daily active addresses.
During Q4 2023, Polkadot’s market capitalization saw a remarkable 111% quarter-on-quarter (QoQ) increase, reaching $8.4 billion. Building on this momentum, Q1 2024 witnessed a further 16% QoQ rise, pushing the circulating market cap to $12.7 billion. However, despite these gains, DOT’s market capitalization is still 80% below its all-time high of $55.5 billion.
Polkadot’s revenue also experienced significant growth in Q4 2023, soaring by 2,880% QoQ to $2.8 million. This surge was primarily attributed to a substantial increase in extrinsics fueled by the Polkadot Inscriptions. However, revenue metrics for Q1 2024 declined significantly on a QoQ basis, with revenue in USD dropping by 91% to $241,000 and revenue in DOT decreasing by 92% to 28,800. This lower revenue can be attributed to Polkadot’s structural design in comparison to its competitors.
Polkadot’s XCM activity showed continuous growth in Q1 2024. Daily XCM transfers increased by 89% QoQ to reach 2,700, while non-asset transfer use cases, referred to as “XCM other,” witnessed a 214% QoQ increase, averaging 185 daily transfers. The total number of daily XCM messages grew 94% QoQ to 2,800, indicating the network’s dynamic ecosystem. Additionally, the number of active XCM channels grew 13% QoQ to a total of 230.
Polkadot’s parachains also experienced significant growth in Q1 2024, with active addresses reaching an all-time high of 514,000, representing a substantial 48% QoQ growth. Moonbeam emerged as the leading parachain with 217,000 monthly active addresses, a solid 110% QoQ increase. Nodle followed closely with 54,000 monthly active addresses, doubling from the previous quarter. Astar and Bifrost Finance experienced modest growth, while Acala saw a decline in monthly active addresses.
Among the parachains, the Manta Network stood out in Q1 2024 with a surge in daily active addresses, reaching 15,000. This increase was attributed to the successful launch of the MANTA token TGE and subsequent listing on Binance, contributing to Manta’s Total Value Locked (TVL) of over $440 million.
In terms of price action, Polkadot’s native token DOT has regained bullish momentum after a drop to $5.8, following a yearly high of $11 on March 14. Currently, DOT has climbed back up to $7.25, marking a 7% increase over the past week. While DOT’s trading volume slightly decreased by 4.7% compared to the previous trading session, it still amounted to $320 million over the past 24 hours.
If the bullish momentum continues, Polkadot could face its first resistance at the $7.4 zone, which could lead to a potential retest of the $8 resistance wall. On the other hand, the $6.4 support floor has proven successful, highlighting its importance as a key level to monitor for upward movement prospects.
Overall, Polkadot has had an impressive Q1 2024, with significant growth in daily active addresses and a positive price trend for DOT.