Polkadot’s Growth Beyond Inscription-Driven Activity is Crucial

Polkadot’s relay chain achieved the milestone of one million transactions in a day. While the chain marked record activity, the surge is fueled by inscriptions.

Crypto commentator asynchronous rob took to X to underline that Polkadot has topped 941,000 transactions recorded on May 5, 2021. According to the influencer, if this trend persists, daily transactions could soar to 3.6 million.

1 Million transactions today on the Polkadot relay chain.

This is the highest activity day on Polkadot in history, topping out the 941,000 transactions on May 5, 2021.

The activity is due to inscriptions. pic.twitter.com/BYoMBREbyd

— asynchronous rob (@rphmeier) December 21, 2023

“The Relay Chain is supporting this demand simultaneously with 50 parachains,” asynchronous rob added.

Polkadot’s uptrend stems from inscriptions

Inscriptions, akin to Ordinals on Bitcoin, serve as data embeds. Since its launch this year, inscriptions have been a positive driver for on-chain transactions and revenue.

That said, Polkadot also recently emerged as a contender in blockchain revenue growth. Polkadot Insider revealed that the chain experienced over 300% revenue growth in the last seven days, placing it second among the top blockchains by revenue rate. It was behind Avalanche which recorded over a 1200% rise.

Coingape recently highlighted that Avalanche faced criticism for its soaring gas fees, which reached $400 while recording over 60 million inscriptions.

Also Read: Polygon Leads in Inscriptions as Co-Founder Criticizes Avalanche Gas

However, Polkadot seems to be putting out some strong financial numbers. At the time of writing, the price of Polkadot (DOT) stands over $8, showing double-digit gains across hourly, daily, and monthly charts.

Monthly revenue up 500% 

The circulating market cap for Polkadot is now to the north of $10 billion, a spike of 24%, based on Token Terminal data. Revenue over the last 30 days has spiked by 500%, at par with the growth in network’s fees.

Asynchronous rob’s recent post also indicates that the blockchain’s transaction rate has escalated to about 250,000 per hour, or between 400 and 450 transactions per block. This is a substantial increase from the previous 250-300 transactions per block, as per the influencer.

Polkadot’s recent performance, with its surging transaction rates and substantial revenue growth, makes it a strong pick in the ecosystem. However, growth in its developer activity, shown via core developers and code commits, has been negative in the 30-day period.

Also Read: Polkadot Price: Is It Worth Investing in Polkadot in 2024?