Polkadot (DOT), one of the prominent blockchain networks in the cryptocurrency space, saw a 16% decline in market capitalization in the third quarter (Q3) of 2023, according to a recent report. a report From Al-Masari.
This decline came after a moderate decline in the overall cryptocurrency market during the third quarter, despite favorable court rulings for XRP And grayscale. The total market capitalization of cryptocurrencies decreased by 5.8%. Bitcoin (BTC) and Ethereum (ETH) fell by 7.5% and 10.0%, respectively.
Polkadot closes third quarter with a market cap of $5.2 billion
As reported by Messari, Polkadot’s market capitalization closed at $5.2 billion, making it the 13th largest crypto asset by market cap in Q3 2023 (currently 15th).
Polkadot’s financial structure is based on a weight-based fee model, which differs from the gas metering model in other networks, e.g Ethereum.
Polkadot’s transaction fees are determined and collected prior to execution, with the calculation including a weight fee reflecting computational resources, a length fee based on transaction size, and an optional tip to incentivize block authors.
In the third quarter of 2023, Polkadot Revenue generated Valued at $94,000, a decrease of 3% compared to the previous quarter. Massari points out that Polkadot’s revenues tend to be relatively lower compared to its competitors due to the network’s structural design.
On the other hand, Polkadot’s native token, a pointIt serves three primary purposes: governance, staking, and umbrella interconnection. During the third quarter of 2023, DOT subscription increased by 12% compared to the previous quarter, reaching 49%.
This increase led to a decrease Betting bonuses The annual nominal return decreases by 12% to 15%. According to Masari, the close correspondence between Polkadot’s staking rate with the ideal rate demonstrates the effectiveness of its mechanism.
Polkadot OpenGov teacher
Polkadot’s treasury supported several initiatives in Q3, including software development, bounties, customer upgrades, and community events such as meetups and hackathons.
According to Massari, the implementation of OpenGov on June 15 was a major milestone, revolutionizing treasury management and enabling concurrent proposals with distinct requirements. At the end of the quarter, Polkadot’s treasury contained approximately 45 million DOT ($185 million).
Furthermore, Polkadot recently completed the official release of Polkadot 1.0, marking a significant milestone outlined in the Polkadot whitepaper.
The entire network database has been moved to a community-run repository through Polkadot OpenGov and technical fellowships. The roadmap for the next iteration, Polkadot 2.0, will be determined through community discussions and consensus.
Founder Gavin Wood proposed ideas for additional mechanisms to allocate Polkadot block space and to create treaty-like agreements between multiple blockchains called “conventions.”
As of this writing, the DOT token has shown a noteworthy upward trend since October 19, closely following Bitcoin’s advance. Currently, the token is trading at $4,839, reflecting a notable increase of over 16% over the past 14 days.
Featured image from Shutterstock, chart from TradingView.com