Polkadot was once a symbol in the cryptocurrency world, raising millions of USD and promising to bring a Web3 revolution. However, currently, Polkadot's situation is causing much concern. Recently, a trader and cryptocurrency analyst pointed out the reasons why Polkadot is declining. We will explore the factors that have led to the decline of one of the leading projects in the industry, from the lack of users to the failure to attract developers. Let's delve deeper into Polkadot's journey.
Polkadot: The Hype and Reality
Launched in 2017, Polkadot attracted 144 million USD in an ICO in just a few minutes and continued to raise an additional 43 million USD afterward. By 2021, Polkadot recorded a price of 55 USD for DOT, with a market capitalization of nearly 50 billion USD. At that time, Polkadot was called the 'Ethereum killer', thanks to its advanced design with parachains and shared security.
The Reality is There Are No Users
Despite advanced technology, Polkadot struggles to attract actual users. Lacking appealing applications and loyal users, the result is that the network has no significant activity. By 2025, the total daily users across all chains had dropped below 5,000.
Developer Abandonment
Developers seem unenthusiastic about building on Polkadot due to the complexity of the technology. Using Rust and Substrate are powerful tools but difficult to learn. In 2022, Polkadot had about 2,400 active developers, but this number has decreased by nearly half by 2024.
Chaotic Parachain Auction
Locking DOT for two years to gain a parachain slot has proven to be a creative idea but has drained the project's momentum. Projects have slowed down, and users have withdrawn. The complexity of this mechanism has severely impacted dynamism and development.
Governance Issues
Despite having a clear vision for on-chain governance, Polkadot ultimately is dominated by 'whales'. In 2024, over 129 million USD from the financial fund was spent with little result. The low voter turnout reduces trust in governance.
Upgraded Technology But No One Cares
Polkadot 2.0 has launched with significant improvements such as increased consensus speed and scalability. However, this has occurred as the market has shifted in another direction. Although fast and efficient, this update no longer captures attention.
Current Situation of Polkadot
Polkadot's structure still works well, with shared security and inter-chain communication features. However, the number of users is concerning. The price of DOT is currently below 5 USD, and attention from the cryptocurrency community has significantly decreased. This proves that excellent technology without users is not enough to ensure survival.
The situation of Polkadot is a warning that building good systems is not enough. Lacking users, stories, and momentum, even great chains can fall into decline.
Source: https://tintucbitcoin.com/polkadot-13-ly-do-du-an-suy-yeu/
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