Polkadot saw a massive dip in valuation during Q2 along with the broader crypto market. However, on-chain data suggested some rare positives. Network usage and developer activity on Polkadot continued to stay high even during the market crackdown.
Mapping the dots correctly
Polkadot’s performance in Q2 of 2022 has been documented in Messari’s “State of Polkadot” report. Polkadot is not new to overcoming such declines as seen previously in July 2021.
At the time, it accounted for an $11 billion market cap which rose spectacularly to $56.6 billion in early November 2021. The network received a massive 406% surge in just 107 days to reach that valuation.
During the second quarter of 2022, strong developer activity has been Polkadot’s plus point. As observed in available data, developer activity scored an average of 11,000 developer activity events per month. Evidently, Polkadot’s developer activity remains among the strongest in the crypto market.
Despite the market turbulences, Polkadot has managed to retrieve users and transactions throughout the quarter. It managed around 145,000 monthly users in this quarter as compared to 149,000 monthly users in Q1 2022.
The consistency in users is further shown in DOT token transfers. In Q2 2022, Polkadot had an average of 293 million DOT transfers per month as compared to 288 million in its previous quarter.
The market cap of Polkadot experienced a significant decimation alongside the broader crypto market. It closed the quarter valued at $7.9 billion, down $15 billion (66%) from the onset of Q2 2022.
What does it all mean for DOT?
DOT continues to be ranked #12 in the crypto rankings by market cap as per CoinMarketCap. At press time it was trading at $6.45 after going down along with other major assets. With high development activity and loyal users, Polkadot can launch a resurgence soon and DOT can reap the benefits of it.