Polkadot (DOT), one of many outstanding blockchain networks within the crypto house, skilled a 16% decline in market capitalization within the third quarter (Q3) of 2023, in response to a current report from Messari.
This decline got here after a average downturn within the total cryptocurrency market throughout Q3, regardless of favorable courtroom rulings for XRP and Grayscale. The full crypto market capitalization declined by 5.8%, with Bitcoin (BTC) and Ethereum (ETH) falling by 7.5% and 10.0%, respectively.
Polkadot Closes Q3 With $5.2 Billion Market Cap
As reported by Messari, Polkadot’s market capitalization closed at $5.2 billion, positioning it because the thirteenth largest crypto asset by market cap in Q3 2023 (at the moment fifteenth).
Polkadot’s monetary construction relies on a weight-based price mannequin, which differs from the gas-metering mannequin in different networks, equivalent to Ethereum.
Transaction charges in Polkadot are decided and charged earlier than execution, with the calculation comprising a weight price reflecting computational sources, a size price primarily based on transaction dimension, and an non-compulsory tip to incentivize block authors.
In Q3 2023, Polkadot generated income amounting to $94,000, representing a 3% lower in comparison with the earlier quarter. Messari means that Polkadot’s income tends to be comparatively decrease in comparison with its opponents because of the community’s structural design.
Then again, the native token of Polkadot, DOT, serves three major functions: governance, staking, and parachain bonding. Throughout Q3 2023, the staking share of DOT rose by 12% in comparison with the earlier quarter, reaching 49%.
This improve led to lowered staking rewards and a 12% decline within the annualized nominal yield to fifteen%. In accordance with Messari, the shut alignment of Polkadot’s staking fee with the best fee demonstrates the effectiveness of its mechanism.
Polkadot’s OpenGov Milestone
The Polkadot treasury supported varied initiatives in Q3, together with software program improvement, bounties, shopper upgrades, and group occasions like meetups and hackerspaces.
In accordance with Messari, the implementation of OpenGov on June 15 marked a major milestone, revolutionizing treasury administration and enabling concurrent proposals with distinct necessities. On the finish of the quarter, the Polkadot treasury held roughly 45 million DOT ($185 million).
Moreover, Polkadot has lately accomplished the official launch of Polkadot 1.0, marking the achievement of a major milestone outlined within the Polkadot whitepaper.
The community’s codebase has been totally transitioned to a repository managed by the group via Polkadot OpenGov and the Technical Fellowship. The roadmap for the following iteration, Polkadot 2.0, might be decided via group discussions and consensus.
Founder Gavin Wooden has proposed concepts for extra mechanisms to allocate Polkadot’s block house and for creating treaty-like agreements between a number of blockchains referred to as “accords.”
As of this writing, the DOT token has exhibited a noteworthy upward pattern since October 19, intently following Bitcoin’s lead. Presently, the token is buying and selling at $4,839, reflecting a notable improve of over 16% throughout the previous fourteen days.
Featured picture from Shutterstock, chart from TradingView.com