- Polkadot grew in demand during Q1
- Despite a peak in the demand during that period, however, revenue fell.
Blockchain Layer 0 Polkadot [DOT] Messari’s recent data shows that the number of users increased dramatically in the first three months of 2018. report.
The on-chain provider of data reports that demand for Polkadot’s Relay Chain, and parachains has reached new heights. The network revenue was still affected by a decline of a large amount during that quarter.
What happened to Polkadot during Q1?
In Q1, Polkadot Relay Chain experienced an increase in both the number of addresses that were returned and those created. Relay Chain acts as the main chain of the network, which coordinates and secures the blockchain.
In the current quarter, Polkadot’s Relay Chain had 8,200 returning addresses. That represents an increase of 9% in addresses active on the network.
In the same 90-day time period, Polkadot created 3,100 addresses on its Relay Chain. The network created 2500 addresses in the third quarter of 2023. This was a QoQ growth of 23%.
Messari’s parachains have also seen similar results. Parachains, or individual blockchains running parallel to each other and connected to Relay Chain are these parachains. During the period under review “parachain active addresses reached an all-time high of 514,000, a 48% increase QoQ,” Messari said.
Parachains like Moonbeam Noodle Astar and Bifrost also saw some success as their user demand spiked during the three-month period.
You can read more about it here Polkadot’s [DOT] Price Prediction 2024-25
Messari added,
“Moonbeam further extended its position as the leading parachain with 217,000 monthly active addresses (+110% QoQ). Nodle followed with 54,000 monthly active addresses, doubling from the previous quarter. Astar saw a moderate increase to 26,000 (+8% QoQ), and Bifrost Finance’s active addresses slightly increased to 10,000 (+2% QoQ).”
The revenue generated from transactions fees has dropped dramatically despite the continued growth of the Polkadot Network in the first quarter.
The report states that the Layer-0 generated $241,000 in revenue from January to March. The report indicated that the Layer-0’s revenue between January and March totaled $241,000, a decrease of 91% from $2.8 million in 2023 Q4 figures.
Messari concluded,
“In Q4 2023, Polkadot’s revenue amounted to $2.8 million, marking a significant increase of 2,880% QoQ. This surge was primarily attributed to the substantial rise in extrinsics in late December, driven by the Polkadot Inscriptions. In Q1 2024, revenue metrics fell significantly on a QoQ basis. Revenue (USD) was $241,000 (-91% QoQ), and Revenue (DOT) was 28,800 (-92% QoQ).”
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Source: ambcrypto.com