- Polkadot recorded a rise in demand in Q1
- However, revenue plummeted despite demand peaking over the period
Layer-0 blockchain Polkadot [DOT] saw a significant uptick in user activity in the year’s first quarter, according to Messari’s latest report.
According to the on-chain data provider, demand for Polkadot’s Relay Chain and its parachains surged to new highs. However, this failed to impact the network’s revenue, which saw a significant decline during the quarter in question.
What happened on Polkadot in Q1?
Polkadot’s Relay Chain saw an uptick in the count of returning addresses and new addresses created on it in Q1. The Relay Chain is the network’s central chain that handles the blockchain’s coordination and security.
During the quarter under review, the number of returning addresses on Polkadot’s Relay Chain totalled 8,200, representing a 9% surge in active addresses on the network quarter over quarter (QoQ).
Likewise, 3,100 new addresses were created on Polkadot’s Relay Chain during the 90-day period. This marked a 23% QoQ increase from the 2500 new addresses created on the network in the last quarter of 2023.
Across its parachains, Messari found similar success. These parachains are individual blockchains that run parallel and are connected to the Relay Chain. During the quarter under review, “parachain active addresses reached an all-time high of 514,000, a 48% increase QoQ,” Messari said.
In fact, parachains such as Moonbeam, Noodle, Astar, and Bifrost recorded some success too as they saw a spike in user demand during that three-month period.
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Messari went on to add,
“Moonbeam further extended its position as the leading parachain with 217,000 monthly active addresses (+110% QoQ). Nodle followed with 54,000 monthly active addresses, doubling from the previous quarter. Astar saw a moderate increase to 26,000 (+8% QoQ), and Bifrost Finance’s active addresses slightly increased to 10,000 (+2% QoQ).”
Interestingly, despite the sustained hike in activity on the Polkadot network in Q1, revenue derived from transaction fees cratered significantly.
Source: Messari
According to the report, the Layer-0’s revenue between January and March totalled $241,000. This alluded to a 91% decrease from the $2.8 million it recorded in Q4 of 2023.
Messari concluded,
“In Q4 2023, Polkadot’s revenue amounted to $2.8 million, marking a significant increase of 2,880% QoQ. This surge was primarily attributed to the substantial rise in extrinsics in late December, driven by the Polkadot Inscriptions. In Q1 2024, revenue metrics fell significantly on a QoQ basis. Revenue (USD) was $241,000 (-91% QoQ), and Revenue (DOT) was 28,800 (-92% QoQ).”