Polkadot has had a series of falls in the cryptocurrency market, just like other other cryptocurrencies. However, this has not diminished the ecosystem’s vitality. Therefore, one can question if the bad market actually affects Gavin Wood’s invention. Polkadot is unquestionably one of the build markets that are being discussed more and more.
Is the decrease of the cryptocurrencies polkadot and kusama merely a surface effect?
We can only conclude that the bear market is existent if we focus solely on the price of the canary network’s polkadot (DOT) and kusama (KSM) symbols. The polkadot is currently trading at $6.48 after reaching an ATH above $54, while the kusama has dropped from $592 to $48. Since the end of the 2021 bull run, their price has therefore been multiplied by 10, like the majority of altcoins. The most recent Messari study on Polkadot, however, demonstrates that this drop is nothing in comparison to the ecosystem’s effervescence. Users are constantly present, and more than 11,000 developer activity take place each month. It should be kept in mind that this environment didn’t exist a year ago.
Interoperable blockchains and parachains are Polkadot’s main strengths.
The parachains mechanism is what makes the Polkadot ecosystem unique. This ecosystem can support parachains, which are specialized blockchains, in order to maintain maximum scalability and full interoperability. However, in order to qualify for this classification, projects must trade a parachain spot for a polkadot or kusama lock. Additionally, they can use crowdloans to ask the neighborhood for financial support in exchange for project tokens.
This method was an excellent promotional tool in 2021 for both the initial products that were launched and Polkadot (including Moonbeam and Astar among the best known). Currently, there are about 40 parachains on the Kusama network and about 20 parachains on the Polkadot network. However, as projects can only secure one spot every week, this number is continually fluctuating. Additionally, these initiatives can interact with one another and grow more and more complementary. As a result, they can communicate tokens to one another directly via the XCM protocol rather than a bridge.
Gavin Wood originally intended for the ecosystem to support 100 parachains. When this quantity is reached, it will be possible to analyze the network’s technical stability. In the coming years, the number of parachains could rise to several hundred if the network can handle them.
The blockchain ecosystem is much more than just the price of cryptocurrencies. There is no denying the hype surrounding this ecosystem. Any application of blockchain technology can be seen on the Polkadot build market. In the upcoming bull run, Polkadot is preparing to be a dangerous Ethereum underdog.
