4 Reasons Why Polkadot has a lot of Potential


At the time of writing this article, according to CoinGecko, the crypto marketcap has tanked to $1.53 Trillion over the last 7 days. All major top tokens bled red and DOT is no exception. DOT is down 20.9% over the last 7 days. 

So, this begs the question, what should DOT investors do now?  By the end of this video, you should get a clear idea whether you should sell your DOT holdings amid the raging negative sentiments, or should you HODL? Let’s dig in!

The polkadot ecosystem turned unstoppable during its first parachain auction event. Since then, investors have been adding liquidity and the Polkadot user-base is growing. The user activity and DOT price were at their highest in November 2021. However, since then, both the parameters have decreased.

The Current State of Polkadot

What is more important is that the development activity on Polkadot is still at its peak. Also, the number of addresses holding DOT increased every month of 2021 and in Q1-2022. The increase signals healthy interest in the Polkadot ecosystem despite decreasing valuations.

And Polkadot’s future looks good as it recently launched XCM, the Cross-Consensus Message Format (XCM). XCM allows parachains to talk to each other and this can make bridges obsolete. This is one of the biggest milestones for Polkadot in 2022. Here is an article we made about XCM.  

Moreover, the next new update is Parathreads. These parathreads are for rent as needed. So, no need for a full parachain slot.  Finally, the networks’ performance will receive an update. This will reduce the block time to 6 seconds instead of 12 seconds. That’s a huge upgrade. 

But apart from all this, there are these 4 protocols that have been fueling the growth of the Polkadot ecosystem where the TVL soared up by over 1000% from March to April. Let’s check out what are these 4 protocols and what’s happening with them.

1) ASTAR

Astar is a multichain contract platform that supports DeFi, NFTs, and DAO protocols. Nowadays, Astar has a large community with more than 30k members with more than 40 projects built on top of it.

Also, ASTR  is currently trading at $0.1125 whose value is 73.2% less than its ATH on January 17th, 2022, and 36.5% more than its ATL on January 26th of the same year. It has a marketcap of $382 million with a 24-hour trading volume of $36.9 million. 

At the time of writing this article, the TVL in Astar is currently at $288.7 million which has increased by 10X since Feb 2022. These are the reasons:

  • A $22M fundraising that leading companies like Polychain, Alameda Research, and Crypto.com have participated in.
  • Polkadot has developed XCM, a consensus that can communicate between different consensuses like Polkadot/Ethereum.
  • Anyone can move USDC from Polygon to Astar.
  • ArthSwap, Starlay Finance, CelerNetwork, and Kangla Finance have contributed $121M, $410M, $218M, and $11M in liquidity to Astar.
  • The ASTR token was listed on Crypto.com, Bancor, and Kucoin.
2) MOONBEAM

Moonbeam is an ethereum-compatible smart contract parachain on Polkadot. This means that developers don’t have to rewrite EVM-smart contracts to deploy them instantly on Moonbeam. Moonbeam is the second project for Polkadot’s auctions.

In this platform, developers can use ethereum-base tools like MetaMask, Remix, and Waffle which extends important features like on-chain governance, staking, and cross-chain integrations.

Also, GLRM is the native token of Moonbeam and is currently trading at $1.87 which value is 90% less than its ATH on January 11th, 2022, and 14.9% more than its ATL on February 24th of the same year. Its marketcap is currently $470 million with a 24-hour trading volume of $67 million.

Moreover, the TVL in Moonbeam is currently at $101.4 million. These are the reasons:

  • Polkadot has developed XCMv2, a consensus that can communicate between different consensuses like Polkadot/Ethereum.
  • KeyFi, a DeFi multichain aggregator,  was launched on Moonbeam.
  • Exiled Racers, is a 3D NFT project that leverages Moonbeam’s EVM compatibility.
  • Moonwell was launched on Moonbeam, which nowadays has more than $179 million.
  • NFTrade is integrated with Moonbeam where GLMR token holders can create, buy, sell, swap, and earn NFTs using it.
  • Via Axelar Network, the ATOM token can be used in Moonbeam.
  • SushiSwap partnered with Moonbeam so SUSHI holders can operate the token on Polkadot.
3) ACALA

Acala is a decentralized platform that empowers liquidity, economic activity, and stablecoin utility. Also, this DeFi network developed aUSD, the decentralized multi-collateralized stablecoin of Polkadot and Kusama. Also, you can access DOT-based assets, derivates, and cross-chain assets from Bitcoin, Ethereum, and others.

ACA is the native token of Moonbeam and is currently trading at $0.77 which value is 72% less than its ATH on January 25th, 2022, and 0.6% more than its ATL on February 24th of the same year. 

Also, nowadays, there are more than 150,000 ACA holders where 37% of the total token supply is circulating. These are the reasons:

  • Acala, among other protocols, has funded $250 million to the aUSD ecosystem fund.
  • The Acala ecosystem has grown with more than 60 dApps in many sectors like DeFi, wallets, Node operators, and bridges, among others.
  • The aUSD stablecoin is now minted on Karura Network too.
4) MOONRIVER

Moonriver is a decentralized platform very similar to Moonbeam, where developers deliver their code to Moonriver first, which is part of Kusama, to get tested/verified, then the code is deployed in Moonbeam. It’s important to mention that Moonriver was launched as a parachain on Kusama in June 2021. 

Moreover, MOVR is the native token of Moonbeam and is currently trading at $29.54 which value is 94% less than its ATH on Sept 11th, 2022, and 0.4% more than its ATL on March 15th of the same year. 

Also, nowadays, 40% of the total token supply is circulating, where the total supply is 10.3 million tokens. Moreover, the TVL is currently at $203 million. These are the reasons:

Conclusion

Polkadot and the protocol tokens fueling its TVL rally are nearly at an all-time low. However, the adoption and the user activity are growing consistently. This strongly indicates that the Polkadot ecosystem is getting ready to witness explosive growth.  We strongly believe could translate into a massive price rally for DOT and its leading ecosystem tokens.

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