• The Messari report reveals that Polkadot’s daily active accounts and new accounts increased significantly in Q4 of 2022.
• A recent surge in active social users was a precursor to the volume surge in early January, supporting the demand for DOT.
• However, recent market conditions have led to a slowdown in demand and significant sell pressure on DOT.
Polkadot’s Address Activity Uptick
Polkadot’s address activity has registered an uptick as market conditions improve. After reaching its bottom range during Q4 of 2022, the market is seeking more directional clarity, with Polkadot off to a healthy start this year so far in terms of its operations.
Q4 2022 Messari Report
A recently released Messari report revealed the state of Polkadot in Q4 2022; daily active accounts grew by 64% while new accounts grew by 49%. This growth may be attributed to users migrating from FTX and a strong recovery in Q1 could contribute to further user activity and growth.
DOT Demand Hanging In The Balance
The recent surge in active social users was a precursor to the volume surge that manifested itself in early January, contributing significantly to DOT’s demand. However, since then we have seen lower demand and significant sell pressure on DOT resulting from FUD – driving it down 13% from its press time price at $6.20.
Projected User Growth For Q1 2023
It is expected that Polkadot user activity may grow at a higher pace than before in Q1 2023 due to the market recovery encouraging more user growth – however this is yet to be seen.
Conclusion
Although Polkadot’s address activity has seen an uptick as market conditions improve, it remains unclear what will happen next without reference points such as the Messari report revealing details about user growth and other metrics which can help us understand what lies ahead for DOT demand.