Messari, a cryptocurrency analysis resource, has published a report on the performance of the Polkadot in Q2022 XNUMX, looking at layer-zero protocol price action, network usage, latest developments in staking and decentralization, and future possibilities.
The survey pointed out that Polkadot has successfully completed 13 auctions of parachain slots, with a total of 127,8 million DOT, worth $2,9 billion (at the end of Q11) and around 28% of the total supply. . A further 41 parachain slot auctions are scheduled through February next year, bringing the total to XNUMX.
While active and new accounts have declined over the same period, the growth of parachains confirms the ecosystem's steady progress.
After the approval of the first slot parachain auction was announced last year, the DOT hit the ATH at $55,08. However, since then, the DOT price has been trading downwards along with the rest of the market. The Messari report also pointed out that the drop in active accounts to users who locked their DOT to support the desired parachain(s) in a slot auction because the locked DOT in a “crowd loan” cannot be withdrawn for use in other applications.
Meanwhile, in the first quarter of last year, the number of DOT addresses increased, indicating growing interest in the ecosystem, despite the market remaining bearish.
By adopting the Nominated Proof-of-Stake (NPoS) consensus mechanism designed to decentralize the network's pool of validators, Polkadot had 294 out of 297 (99%) validators receiving 1,8–2,6 million DOTs.
This was regarded as a form of healthy distribution of validators for total participation, a success of decentralizing overall power due to the mechanism that encourages nominators to bet with lower value validators to earn higher rewards.
However, in 2022, the Polkadot network faced serious challenges, with the report stating that interest in the ecosystem waned after users flooded into parachain auctions and suggesting that Polkadot “needs a spark” as it develops “a new( s) primitive(s) using cross-chain architecture and communication XCM” to attract users again.
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