Polkadot ($DOT), a network that is often described as a “blockchain of blockchains” that allows users to launch and operate their own blockchain on top of the main Polkadot blockchain, has seen its active user numbers surge 300% amid an ongoing cryptocurrency market rout.
According to data shared by Dot Insights, a project tracking the progress being made on both Polkadot and its canary network Kusama ($KSM), over the past two weeks Polkadot has seen its number of daily new accounts rise by nearly 10x, while its active accounts increased 300%.
Polkadot’s main blockchain, called the relay chain, does not support smart contracts, but other blockchains connected to it can support them. As a result, Polkadot is expected to become a growing ecosystem of cryptocurrencies that competes with other smart contract networks such as Ethereum, the BNB Chain, and more. It was launched in 2020 and brings a number of technical features that help it reach its goal.
DOT is the native cryptocurrency of the Polkadot network and serves as its governance token. DOT holders can stake their tokens to vote on network upgrades and help decide the future of Polkadot by actively participating in its governance, according to CryptoCompare.
DOT holders can influence the project’s governance by voting on changes, and by electing the Council members. These are responsible for proposing changes and determining which ones are made to the software.
The project’s growth came amid a wider cryptocurrency market rout caused by a bank run on crypto exchange FTX, which revealed it did not have enough funds to cover users’ withdrawals. Bitcoin’s price has, as a result, plunged from over $20,000 to a low under the 416,000 mark before recovering.
The cryptocurrency space has, over the last seven days, lost around $150 billion in total market capitalization as confidence in centralized exchanges was severely affected by FTX’s collapse.
Featured Image via Pixabay