Altcoin
Will Polkadot’s [DOT] new parachain fix the blockchain?
- AlephZero was added to Polkadot as the 38th parachain.
- Despite declining activity, staker interest and development activity increased.
AlephZero, a zkSnark based cryptocurrency, was added to Polkadot [DOT] as the 38th parachain on the network. This addition to Polkadot could likely improve the state of its ecosystem. However, despite the growing ecosystem, there were areas where Polkadot did not show any improvement.
Recently, @Aleph__Zero officially became the 38th #parachain on @Polkadot
With new technology solutions, ? let's see if #AlephZero has a chance of narrowing the gap between them all
Below are their technology solutions ?#Polkadot $DOT #DOT #AZERO pic.twitter.com/YWmKGyfK2l
— Polkadot Insider (@PolkadotInsider) February 1, 2023
Read Polkadot’s [DOT] Price Prediction 2023-2024
According to a tweet by Polkadot Insider, the overall transfer amount for DOT decreased over the last week. Subsequently, the revenue generated by Polkadot declined as well.
? Let's get to know the on-chain weekly recap of @Polkadot?
The below picture illustrates:
?Daily transfer amount
?DAILY NEW USERS
?Total revenue #Polkadot #DOT $DOT pic.twitter.com/olcwyeYR1b— Polkadot Insider (@PolkadotInsider) January 31, 2023
Stakers show faith
Despite this decline in overall activity on Polkadot, stakers on the network continued to show interest in the cryptocurrency. This could be due to the introduction of nomination pools, which would allow holders to stake with just one DOT.
According to data provided by Staking Rewards, the number of stakers on Polkadot increased by 5.84% over the last month.
Source: Staking Rewards
Despite the increase in the number of stakers on the network, the volume for the DOT token declined. According to data provided by Santiment, DOT’s volume fell from 356 million to 192 million in the last month.
However, development activity on the network increased during this period, as indicated by a significant increase in contributions made to Polkadot’s GitHub by developers. This increase in development activity, along with new referendums related to the governance of Polkadot, could make investors more interested in DOT.
Realistic or not, here’s DOTs market cap in BTC’s terms
Source: Santiment
The interest generated by these developments could be the reason why Polkadot‘s marketcap dominance has grown over the past month. Additionally, the declining volatility of Polkadot was also expected to attract more investors to the network.
Source: Messari
Despite some challenges, such as the decline in overall activity and volume for the DOT token, the continued interest of stakers and the increase in development activity suggested that Polkadot has a bright future ahead. With upcoming developments and referendums, the network is expected to attract even more investors in the future.
