Polkadot’s Growth Continued Unabated In Q4

FinanceFeeds Editorial Team

Rapid progress is the name of the game at Polkadot, which continued headlong towards its goal of creating a multichain ecosystem for Web3 in the final few months of 2022. 

Polkadot has just published its Q4 Report, highlighting some of the most important recent achievements and milestones attained by its ecosystem, and it provides plenty of encouragement for fans of the project and DOT cryptocurrency holders. 

One of the key updates in the last three months was a new capability within Polkadot itself. The network finally went live with “Nomination Pools”, a new feature that dramatically reduces the minimum requirement for people who want to natively stake their DOT tokens. Previously, users who wanted to stake natively had to commit at least 200 DOT tokens (around $980), but this has now been lowered to just 1 DOT through the Nomination Pools, which enable users to pool their tokens together to nominate validators and earn rewards. 

While users could stake lower amounts of DOT through third-party services, doing so came at a cost, with those providers helping themselves to a percentage of the user’s rewards. So it’s a positive move that should encourage further participation in the Polkadot network, helping to make it more secure and increase its decentralization. The latest data suggests that’s the case, with more than 3,475 pool members bonding a combined 854,495 DOT at the end of the year, just two months after the feature went live. 

Further good news for DOT holders came in October when the Web3 Foundation revealed that Polkadot’s native token had officially “morphed” into a non-security. The Foundation said DOT’s newly-defined status came after three years of engagement with the U.S. Securities and Exchange Commission. Numerous changes were made to convince the SEC that DOT should not be classed as a security, but rather as “software”. 

DOT is notably the first-ever “altcoin” to achieve this status, and along with BTC is the only cryptocurrency to become a non-security. It’s a positive change for Polkadot because the U.S. has some of the strictest regulatory laws and requirements when it comes to unregistered security offerings. By being classed as a non-security, DOT becomes a much more attractive, and regulated investment. 

Parachains Push Forward

There was good news concerning some of the most notable parachains in the Polkadot ecosystem too. Astar, the smart contract platform of Polkadot, said last month it had signed a deal with Japanese telecommunications giant NTT Docomo to promote greater adoption of Web3 technologies. The Japanese carrier will also invest as much as $4 billion on decentralized technology, while working with Astar to foster sustainable development and educate people on the benefits of Web3. 

Meanwhile, the KILT Protocol chalked up a significant milestone when it carried out the first full migration of a blockchain network from Kusama to Polkadot. Kusama is the canary network of Polkadot, a place where developers test new features and capabilities and iron out any problems before they bring them to Polkadot’s relay chain. As such, Kusama can be a bit buggy. Given that a number of large enterprises are implementing business use cases on KILT, a decentralized identity protocol, it was decided that a more stable network was required. 

Developers Embrace Polkadot

Perhaps the most telling statistic regarding Polkadot’s progress is the growth of its developer community. In its report, Polkadot cited Electric Capital data that shows it is now the number one Web3 project in the blockchain industry, with 1,128 weekly active developers producing a combined 13,934 weekly commits during the fourth quarter. It puts Polkadot at the top of the list, both in terms of how many developers it has working on it, and in terms of overall development activity. 

The strength of Polkadot’s community is particularly evident by the fact that two projects within its ecosystem – Manta Network, a privacy protocol, and Kusama – ranked third and fifth, respectively, on Electric Capital’s list. 

Ecosystem Updates

Last but not least, the Web3 Foundation provided a few insights on its efforts to foster growth within its ecosystem. It noted that the Polkadot Treasury spent more than 4 million DOT supporting various initiatives over the last year, rising from just 200,000 DOT one year ago. Moreover, the Web3 Foundation grants program dished out money to 27 new projects during the quarter, bringing its total number of grants to 476. 

Read this next

Executive Moves

Avelacom appoints Timothy Wong to run new Hong Kong office toward APAC expansion

Avelacom helps to achieve sub-millisecond speed of market data and order execution across both derivatives exchanges and crypto markets.

Executive Moves

XS.com hires Ahmed Negm, a popular market analyst on CNBC, Sky News, Bloomberg’s Asharq

“Ahmed’s expertise and passion for understanding the intricacies of the financial markets will be invaluable as we continue to grow our client base and expand into new jurisdictions.”

Institutional FX

ATFX uses blockchain to help clients verify IBs and vice versa

ATFX said it has been working on the IB verification project for a few months.

Industry News

Research market in dire straits as SEC’s ‘no-action’ letter on MiFID II lapses in June – survey

“Of all the regulatory news that has hit the research market in the last few months, this is the one change that will fundamentally impact what fund managers can access and pay for in future.”

Executive Moves

Wombat appoints ex-abrdn Richard Charnock as UK platform turns to Europe

Launched in 2019, Wombat provides a dedicated mobile investing platform – available on both iOS and Android – offering users both range and choice.

Institutional FX

Broadridge integrates Point Focal’s pre and post-market reports

“Point Focal provides a unique lens on the market which will help add alpha to the trading process and these new insights will rapidly improve performance while mitigating execution risk and simplify trading.”

Technology

XCritical integrates with Brokeree Solutions, allowing its clients to launch copy trading 

The forex software provider – XCritical, has integrated Social Trading by Brokeree Solutions into their CRM system.

Industry News

HKEX partners with Saudi exchange for cross listings, ESG, Fintech

“The Kingdom of Saudi Arabia, and the broader Middle Eastern region, are one of the world’s most dynamic and exciting economic and innovation hubs and also home to some of the fastest growing investor groups in the world. Hong Kong and HKEX’s markets offer significant opportunities for international investors and corporates, including unrivalled connectivity to the Mainland Chinese markets through our unique Connect programmes. This agreement signals the beginning of even greater collaboration between our companies and our home markets, and we look forward to exploring many future areas of cooperation.”

Executive Moves

CMC Markets Connect relocates APAC team led by Peter Foster to Singapore

“Singapore is a vibrant city and is now undoubtedly seen as Asia’s leading financial hub. The decision to bolster the CMC Markets Connect team here will help us cement the company’s position as a leading provider of multi asset liquidity and comprehensive trading solutions across the region.”

<