Parachains on Polkadot – One year on, here’s where it stands
- Acala Network and Parallel both have more than $200 million in TVL
- DOT’s 24-hour price chart was green, but market sentiment remained negative
Polkadot Insider recently revealed that Polkadot [DOT] has completed a year since the launch of its parachains. Parachains have contributed significantly over the months towards Polkadot’s growth in the DeFi space.
Realistic or not, here’s DOT market cap in BTC‘s terms
Polkadot parachains have come a long way
Polkadot Insider’s latest tweet highlighted all the parachains that contributed to growing the blockchain in the DeFi ecosystem. It also mentioned that the network has quickly become the home of the largest ecosystem of blockchains in the world.
It’s been just over a year since parachains first launched on @Polkadot, and the network has quickly become the home of the largest ecosystem of blockchains in the world ??
— Polkadot Insider (@PolkadotInsider) June 11, 2023
The first DeFi parachain on Polkadot, named Acala Network, was onboarded in December 2021. It offers an all-in-one DeFi hub with applications for end-users, stablecoin (aUSD), and a smart contract platform for developers.
Another popular parachain is CVL, a cross-chain interoperable suite of DeFi applications. It provides a non-custodial wallet, an Ethereum-compatible smart contract platform, and access to DeFi, GameFi, NFTs, and the Metaverse.
The tweet also mentioned Parallel. It is an institutional-grade DeFi protocol, offering a multichain wallet, borrowing and lending, swaps, staking, and infrastructure for decentralized organizations.
Parachains contribute heavily towards Polkadot’s TVL
Network activity and value of the parachains look encouraging. Acala Network alone has $200 million in TVL. On the other hand, Parallel is widely adopted, with over $200 million in TVL across more than 300,000 users.
Thanks to the aforementioned, Polkadot’s overall TVL has risen considerably over the past year, as is evident from DeFiLlama’s chart. Considering the growth and increased adoption of multiple parachains on Polkadot, the possibility of the chart rising further seems likely to happen in the coming months.
Apart from growth in DeFi, it is also interesting to see Polkadot’s staking ecosystem grow. As per Staking Rewards’ data, the number of DOTs staked has registered a hike over the last 30 days.
At press time, DOT had a staking ratio of over 42% and a staking market capitalization of $2,553,269,66.
How much are 1,10,100 DOTs worth today
DOT is showing signs of recovery
Like most other altcoins, DOT also saw major price correction, which fueled a double digit decline in its price last week. However, DOT’s 24-hour chart was green as its price recovered marginally.
According to CoinMarketCap, at the time of writing, DOT was trading at $4.50 with a market capitalization of over $5 billion. However, despite the price uptick, positive sentiment around DOT remained low, reflecting less confidence among investors in the token. Additionally, DOT’s 1-day price volatility also went down, decreasing the chances of an uptrend.