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Will Polkadot’s [DOT] new parachain fix the blockchain?

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Will Polkadot's [DOT] new parachain fix the blockchain?

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  • AlephZero was added to Polkadot as the 38th parachain.
  • Despite declining activity, staker interest and development activity increased.

AlephZero, a zkSnark based cryptocurrency, was added to Polkadot [DOT] as the 38th parachain on the network. This addition to Polkadot could likely improve the state of its ecosystem. However, despite the growing ecosystem, there were areas where Polkadot did not show any improvement.


Read Polkadot’s [DOT] Price Prediction 2023-2024


According to a tweet by Polkadot Insider, the overall transfer amount for DOT decreased over the last week. Subsequently, the revenue generated by Polkadot declined as well.

 

Stakers show faith

Despite this decline in overall activity on Polkadot, stakers on the network continued to show interest in the cryptocurrency. This could be due to the introduction of nomination pools, which would allow holders to stake with just one DOT.

According to data provided by Staking Rewards, the number of stakers on Polkadot increased by 5.84% over the last month.

Source: Staking Rewards

Despite the increase in the number of stakers on the network, the volume for the DOT token declined. According to data provided by Santiment, DOT’s volume fell from 356 million to 192 million in the last month.

However, development activity on the network increased during this period, as indicated by a significant increase in contributions made to Polkadot’s GitHub by developers. This increase in development activity, along with new referendums related to the governance of Polkadot, could make investors more interested in DOT.


Realistic or not, here’s DOTs market cap in BTC’s terms


Source: Santiment

The interest generated by these developments could be the reason why Polkadot‘s marketcap dominance has grown over the past month. Additionally, the declining volatility of Polkadot was also expected to attract more investors to the network.

Source: Messari

Despite some challenges, such as the decline in overall activity and volume for the DOT token, the continued interest of stakers and the increase in development activity suggested that Polkadot has a bright future ahead. With upcoming developments and referendums, the network is expected to attract even more investors in the future.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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