- Polkadot’s staking ecosystem registered growth in Q4 2023 and in 2024.
- DOT was down by 5% in the last 24 hours, thanks to the bearish market.
As the market turned volatile in the beginning weeks of 2024, Polkadot [DOT] posted its Q4 2023 update. The report mentioned several metrics and datasets showing how the blockchain performed during the last quarter of 2023.
Considering the updates, is it likely for Polkadot to maintain the same trend in 2024?
A look at Polkadot’s Q4 2023 stats
Polkadot recently posted an X (formerly known as Twitter) thread, highlighting the blockchain’s performance on multiple fronts during Q4 2023.
As per the tweet, last quarter, Polkadot experienced consistent organic growth, with a notable uptick in transactional data towards the end of December.
1/ The Polkadot Q4-2023 Update is Here 🔥
Polkadot saw sustained organic growth last quarter, with a big spike in transactional data in late December – while fees remained stable as the network demonstrated its ability to support enhanced activity⚡ pic.twitter.com/lGmSEspNrB
— Polkadot (@Polkadot) January 12, 2024
Robert Habermeier, the founder of Polkadot, noticed the increased activity. He also mentioned that the possible reason behind the uptick in transactions could be because of the rise in the popularity of inscriptions.
Polkadot’s native cross-consensus messaging format, XCM, also got busy.
This was the case as around 17,000 messages were sent per month from January to September, which increased substantially to 449,813 in December 2023, which was commendable.
Aside from that, native USDC joined the Polkadot ecosystem in Q3, and in Q4, over $10 million was being exchanged on the platform.
Additionally, DOT’s Treasury collected 110,000 DOT from 13 million transactions in just 48 hours during Q4.
Polkadot in 2024
While the aforementioned metrics looked optimistic, AMBCrypto checked the latest data to find out whether DOT was growing in 20245.
Our look at Token Terminal’s data revealed that, after a short dip, Polkadot’s daily active addresses gained upward momentum. This clearly indicates high network activity. Additionally, its fees also remained high throughout the last week.
Source: Token Terminal
DOT’s Q4 report mentioned that almost 100 million DOT was unlocked at the beginning of the quarter, leading to the number of staked tokens rising from 673 million to 709 million DOT by November 2023.
The growth rate remained stable in 2024 as well because the number of staked DOTs increased. Our analysis of Staking Rewards’ data pointed out that Polkadot had a total of 109.41 thousand staking wallets with a staking market capitalization of over $5.5 billion.
Source: Staking Rewards
Though the blockchain’s stats improved in 2024, DOT’s price action turned bearish. According to CoinMarketCap, DOT was down by more than 5% in the last 24 hours alone.
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At press time, it was trading at $7.69 with a market cap of over $10 billion.
AMBCrypto’s look at Polkadot’s liquidation heat map revealed that the token witnessed high sell-offs when its price touched the $8.2 mark. This caused a price decline, the effects of which were still felt.
Source: Hyblock Capital