Polkadot, the smart contracts platform that is often referred to as blockchain of blockchains, has been witnessing a big jump in the number of active users recently. The active users on the platform have surged by almost 300% in two weeks, according to a tweet from Dot Insights. The numbers have risen from 1,100 to 4,516.
In the same fortnight of November 2022, the number of new accounts added daily, or the on-chain public addresses on Polkadot chain, also skyrocketed. It has seen a rise of almost 900%.
— dotinsights (@dotinsights_xyz) November 14, 2022
The project by Dot Insights, which was designed to track the progress of Polkadot (DOT) and Kusama (KSM), showed an increase in footfall on Polkadot despite the recent market rout following the collapse of crypto exchange giant FTX.
The rise in the number of active users can be attributed to the recent outflow of liquidity from centralized exchanges to self-custody wallets revealed by Glassnode, the well-known on-chain analytics platform.
However, in the mean time, the price of DOT failed to move north despite the increased on-chain activity levels. On the contrary, DOT fell from $7.35 to $5.4, courtesy of developments around FTX. DOT is currently trading closer to the $5.85 level.
The smart contracts platform has also been recording higher than usual development activity for a few months now. In September 2022, Polkadot recorded more than 500 contributions each day—an all-time high for the multichian protocol.
According to project developers, 66 blockchains are now live on Polkadot and parachain startup network Kusama. Parachains are Layer-1 blockchains that run parallel to the main chain (in this case, Polkadot). They are first tested on Kusama. Polkadot aims to scale the speed of the network to somewhere between 100,000 and 1 million transactions per second.