A popular cryptocurrency analyst and influencer has recently revealed that, based on a report by Electric Capital, Polkadot ($DOT) and Cosmos ($ATOM) have the potential to outperform the wider cryptocurrency market over the next cycle.
In a video Coin Bureau host Guy Turner shared with his over 2.2 million subscribers on the Google-owned video-sharing platform YouTube, he revealed that both of the blockchains have been able to both attract and retain developers during the bear market, despite having less funding than competitors like Solana ($SOL) and Polygon ($MATIC).
To the analyst, this means that both digital assets could outperform the wider cryptocurrency market when investors turn bullish, as per his words blue-chip projects with “lots of funding have been the least affected by the bear market,” with some exceptions being $DOT and $ATOM.
Per Turner, the “ability to continue building a developer base despite having significantly less funding is another quality both projects share.” As Daily Hodl reported, the analyst said that the lack of enthusiasm for the projects during the previous cycle “suggests the next one will be their time to shine.”
The Electric Capital report shows that the developer count for Solana, Polkadot, Cosmos, and Polygon has risen from under 200 during the 2018 crypto downturn to over 1,000 now.
Blockchains like Aptos (APT) experienced a yearly increase of over 50% in the number of developers, while Near Protocol saw a 40% year-over-year rise. However, Turner warns that regulatory uncertainties and potential crypto price declines could hurt projects’ ability to retain developers.
If the crypto market continues to crash, or even just move sideways, it could have a negative impact on developer retention for all crypto projects and protocols.
The analyst also cautioned that there’s risk in regulators in the U.S. potentially cracking down on these projects.
As CryptoGlobe reported, Polkadot, a blockchain network often described as a “blockchain of blockchains,” has recently become the leading cryptocurrency network by development activity after surpassing Cardano ($ADA).
Polkadot saw its active user numbers surge 300% amid last year’s cryptocurrency market rout. 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.
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