In the first quarter of 2024, Polkadot’s blockchain protocol saw significant progress in terms of market capitalization and revenue. The market capitalization experienced a notable 16% quarter-on-quarter increase, reaching $12.7 billion. This momentum built upon the previous quarter, where Polkadot saw a 111% increase in market capitalization, reaching $8.4 billion. Despite these gains, the current market capitalization remains 80% below its all-time high of $55.5 billion, which was set in November 2021.
While the market capitalization saw positive growth, the revenue metrics for Polkadot were more mixed. In Q4 2023, Polkadot’s revenue skyrocketed by 2,880% quarter-on-quarter, amounting to $2.8 million. This surge was primarily driven by an exponential increase in extrinsics, attributed to the Polkadot Inscriptions. However, revenue metrics for Q1 2024 declined significantly. Revenue in USD dropped by 91% to $241,000, and revenue in DOT decreased by 92% to 28,800. It is important to note that Polkadot’s revenue tends to be lower compared to its competitors due to the network’s structural design.
Polkadot’s XCM activity continued to show growth in Q1 2024. Daily XCM transfers surged by 89% quarter-on-quarter to reach 2,700. Non-asset transfer use cases, known as “XCM other,” witnessed a 214% increase, averaging 185 daily transfers. The total number of daily XCM messages grew by 94% quarter-on-quarter to 2,800, showcasing the network’s dynamic ecosystem. Additionally, the number of active XCM channels grew by 13% quarter-on-quarter to a total of 230.
Q1 2024 marked a significant kick-off for Polkadot’s parachains, with active addresses reaching an all-time high of 514,000, representing a substantial 48% quarter-on-quarter growth. Moonbeam emerged as the leading parachain with 217,000 monthly active addresses, showing a solid 110% quarter-on-quarter increase. Nodle followed closely with 54,000 monthly active addresses, doubling from the previous quarter. Astar saw a modest 8% quarter-on-quarter growth to reach 26,000 active addresses, while Bifrost Finance grew slightly by 2% quarter-on-quarter to 10,000 addresses. Conversely, Acala experienced a decline, with monthly active addresses falling to 13,000, down 16% quarter-on-quarter. The Manta Network stood out among parachains in Q1 2024, with a significant surge in daily active addresses, reaching 15,000.
In terms of price action, Polkadot’s native token DOT has shown bullish momentum, rebounding from a drop to $5.8 after reaching a yearly high of $11. Currently, DOT has regained the $7.25 level, up 7% over the past week. However, DOT’s trading volume decreased slightly by 4.7% compared to the previous trading session, amounting to $320 million over the past 24 hours. If the bullish momentum continues, Polkadot faces its first resistance at the $7.4 zone, before potentially retesting the $8 resistance wall. The $6.4 support level has proven successful after being tested for two consecutive days, indicating its importance as a key level for the token’s upward movement prospects.
Polkadot has made significant progress in Q1 2024, with notable growth in market capitalization, XCM activity, and active addresses for parachains. Despite some revenue challenges, the overall trajectory appears positive for the blockchain protocol. As Polkadot continues to evolve and expand its ecosystem, it will be interesting to track its performance in the coming quarters.