Polkadot Core developer activity stabilized in Q1 2025 after several quarters of decline. The average weekly number of active core developers rose 1.5% QoQ to 122.
Frequency, Phala, and Energy Web X led the ecosystem in active addresses. Together, they accounted for a substantial share of activity and maintained throughput while other networks saw pullbacks.
The Polkadot treasury recorded its first net-positive financial result after accounting for inflation and burn. This came despite despite a 34.9% QoQ decline in its USD value to $109.7 million.
User experience and onboarding received targeted attention through new initiatives. The UX Audit Grants Program and multiple UX Bounties advanced to implementation, helping reduce friction for users and developers alike.
Total Polkadot ecosystem transactions declined 36.9% QoQ to 137.1 million. Despite the decline, Moonbeam, Mythos, and peaq led growth, each posting transaction increases due to new protocol rollouts and product updates.
Primer
Polkadot (DOT) is a distributed blockchain computing platform that acts as a base layer for other sovereign blockchains, initially called “parachains” and now called “rollups,” for validation and shared security. Polkadot was built using Substrate, a blockchain development framework now more commonly known as the Polkadot SDK. Furthermore, Polkadot’s base layer is known as the Polkadot Chain (aka Relay Chain), which utilizes a Nominated Proof-of-Stake (NPoS) consensus mechanism, and its state machine is compiled to WebAssembly (Wasm).
The Polkadot Chain’s core function is to validate and provide security to its rollups. Agile Coretime, released in Q3 2024, enhances the network’s scalability, cost-efficiency, speed, and flexibility by dynamically allocating computational resources. This feature replaces the previous system of leasing single cores through auctions with an on-demand blockspace model, adjusting resource availability based on network demand. This approach helps prevent resource wastage during periods of low activity and mitigates congestion during peak times.
Lastly, rollups on Polkadot can communicate with one another through the Cross-Consensus Mechanism Format (XCM). The XCM is a messaging format that standardizes messages between Polkadot’s chains, allowing for greater interoperability.
Transaction activity within the Polkadot ecosystem slowed in Q1 2025. Total transactions decreased 36.9% QoQ to 137.1 million. However, on a YoY basis, total ecosystem transactions rose 76.3% from 77.8 million in Q1 2024. The main reason for the quarterly decline is more efficient transaction processing by Neuroweb. With DKG V8 introduced during Q1, Neuroweb enabled batch minting of Knowledge Assets — allowing hundreds to be minted in a single transaction — and replaced the old service agreement model with a random sampling proof system. These upgrades significantly reduced the number of onchain transactions needed, even as network activity continued to scale.
Despite the quarterly decline in transactions, three networks maintained positive momentum:
Moonbeam: A Polkadot-based network that combines full Ethereum compatibility with the scalability and interoperability of Polkadot. Built using the Polkadot SDK and written in Rust, Moonbeam enables developers to deploy existing Solidity-based applications with minimal changes, while benefiting from Polkadot’s shared security and crosschain capabilities. During Q1’25, Moonbeam processed 16.7 million transactions, up 6.5% QoQ. That made up 12.2% of all transactions across the ecosystem.
In January 2025, Moonbeam published the DataHaven Litepaper, which introduces a decentralized storage protocol designed for AI and Web3 applications.
Mythos: A Polkadot-based network designed to power Web3 gaming. Governed by the Mythos DAO and fueled by the MYTH token, it enables decentralized game economies, player-owned assets, and community-driven governance. Transactions on Mythos increased 12% QoQ to 12.3 million during Q1’25, accounting for 9% of all ecosystem activity.
In March 2025, the Mythos Foundation launched MYTH staking, allowing tokenholders to earn rewards while supporting the network’s gaming infrastructure. Over 30 million MYTH tokens were staked within the first week.
In January 2025, Silencio became the first DePIN to launch its token (SLC) on peaq. Silencio turns smartphones into noise sensors and rewards users with tokens for contributing to a noise pollution map.
In March 2025, peaq introduced Universal Machine Time (UMT), the first onchain implementation of the Precision Time Protocol. By providing ultra-precise timestamps, UMT enhances coordination, data consistency, and smart contract execution across real-world AI and machine networks.
Despite flat or declining growth, the following networks continued to drive a large share of ecosystem transactions:
Frequency: A Polkadot-based network designed to support decentralized social networks by implementing the Decentralized Social Networking Protocol (DSNP). DSPN grants individuals ownership and control over their online identities and data. Frequency led the Polkadot ecosystem in transaction count, contributing 26.8 million transactions, or 19.5% of the total.
Phala: A Polkadot-based network that provides privacy-preserving compute infrastructure for crypto applications by leveraging Trusted Execution Environments (TEEs). In Q1 2025, Phala processed 15.1 million transactions, accounting for 11% of total ecosystem transactions.
In January 2025, Phala launched OP-Succinct, a new Ethereum Layer-2 network built with Succinct Labs and Conduit. The rollout expanded Phala's TEE computing services from Polkadot to Ethereum.
Also in January 2025, Phala introduced Phala Cloud, a platform designed to make it easier to deploy and manage applications built for AI within a trusted execution environment.
Energy Web X: A Polkadot- based network designed to coordinate worker node networks, enabling enterprises to execute sensitive energy-related business processes across multiple organizations. The network processed 11.4 million transactions in Q1 2025, representing 8.3% of total ecosystem activity.
NeuroWeb: A Polkadot-based network designed to power decentralized AI applications by incentivizing knowledge creation and sharing through Knowledge Mining. In Q1 2025, NeuroWeb processed 9.2 million transactions, representing 6.7% of total activity across the Polkadot.
Litentry: A Polkadot-based network designed to abstract away the complexity of crosschain interactions. In Q1 2025, it processed 8.8 million transactions, accounting for 6.4% of total ecosystem activity.
In February 2025, Litentry rebranded to Heima Network. The rebrand marks a transition from decentralized identity to chain abstraction infrastructure, aimed at unifying crosschain identity and asset management.
Polkadot Ecosystem Active Addresses
Active addresses across the Polkadot ecosystem declined in Q1 2025. Total Monthly Active Addresses (MAAs) fell from 610,000 to 529,900, a 13.1% QoQ decrease. The networks with the highest shares of MAAs were the Polkadot Chain (48.8%), Moonbeam (21.4%), and peaq (11.3%). Other networks with notable activity included:
Unique Network: A Polkadot-based network designed for NFTs. There were 44,000 MAAs on Unique Network in Q1’25, accounting for 8.3% of total MAAs across Polkadot.
Hydration: A protocol built on Polkadot, designed to unify trading, lending, and stablecoin functionalities within a single appchain. It recorded 13,700 MAAs in Q1’25, representing 2.6% of total MAAs across Polkadot.
Nodle: A decentralized wireless network that leverages smartphones as edge nodes to provide connectivity for Internet of Things (IoT) devices. Nodle recorded 6,500 MAAs in Q1’25, representing 1.2% of total MAAs across Polkadot.
Bifrost: A liquid staking appchain on Polkadot that lets users mint yield-bearing tokens like vDOT and vETH. Bifrost recorded 4,300 monthly active addresses in Q1’25, representing 0.8% of total MAAs across Polkadot.
Ecosystem Development
Developer activity across the Polkadot ecosystem showed no major changes in Q1 2025. The number of average weekly active core developers ticked up slightly to 122, ending a multi-quarter decline with a 1.5% QoQ increase. However, activity across the Polkadot ecosystem continued to contract. Average weekly active ecosystem developers fell 5.7% to 421, while average weekly ecosystem commits dropped 14.4% to just over 3,000.
Beyond the numbers, several initiatives in Q1 2025 focused on improving the developer experience and onboarding new contributors.
The Polkadot-API team delivered multiple enhancements across its tooling. Key upgrades included improved support for Ethereum-like chains, new multisig and proxy signers, and native ink! smart contract integration. The team also launched the PAPI Console, a new interface for developers to interact with chains more easily, and released early versions of SDKs that simplify governance and smart contract workflows.
Preparations began for the dApps track at the Polkadot Blockchain Academy in Lucerne during Q1 2025, designed to give new developers hands-on experience with ecosystem tools.
Launched the UX Audit Grants Program, designed to help Polkadot projects identify and resolve usability issues through professional UX audits. The first batch of six audits was fully booked, with audits for SubSquare, Mimir, and Polkassembly already underway. A second batch is scheduled to open in June.
Completed and moved two user experience bounties (UXBs) into implementation:
UXB-6: Unified Glossary – Version 01 was published, focusing on DeFi terminology. Adoption discussions began with teams such as Bifrost, Hydration, Turtle, and Hyperbridge.
UXB-3: Protective Measures for CEX Transfers – Final documentation was delivered and shared with wallet teams for implementation.
Advanced work on other ongoing UXBs:
UXB-1: Unification of Address Format – All three wallet implementations are ready. Hydration is expected to upgrade soon, with others following through 2025.
UXB-2: DOT as a Unified Gas Token – A revised guide was published, with support from contributors offering implementation assistance to rollups.
Restructured the UX Bounty program to improve execution speed and align more closely with community needs. Curators expanded their roles to include communications, collaboration with ecosystem teams, and broader strategic planning.
Supported ecosystem-wide transitions, including UX coordination during Parity’s migration of the Polkadot Chain to Asset Hub. The team worked closely with UI-facing teams to ensure continuity and minimal disruption for end users.
Increased cross-initiative collaboration, working with projects like the Hub Initiative (Velocity Labs and Magenta Labs), the Polkadot Chain migration team, and other bounties to unify standards and developer experience efforts.
Financial Analysis
DOT Token
DOT fell 39.3% in Q1 2025, ending the quarter at $4.02 after a strong rebound in Q4’24. The drop brought its circulating market cap down to $6.1 billion, while the circulating supply dipped slightly by 2.3% to 635.6 million. Despite the pullback, DOT’s circulating market cap rank held steady at 19th throughout the quarter, suggesting its performance was broadly in line with the wider market.
Treasury
The Polkadot treasury value fell 34.9% in Q1 2025, ending the quarter at $109.7 million. The drop was primarily driven by DOT’s price drop, as the DOT-denominated balance slightly increased. Polkadot treasury assets comprise DOT, USDT, USDC, and MYTH tokens. These assets are held across three networks: Polkadot, AssetHub, and Hydration.
Strategic initiatives such as marketing, DeFi tooling, gaming, and business development were earmarked $25 million, while $7.8 million were deployed into “DeFi market operations" during the quarter. Liabilities stood at $3.6 million, payable by year-end. Notably, this quarter marked the first net positive financial outcome for the treasury since reporting began, with a net profit of 80,000 DOT after accounting for inflation and burn.
Expenditures for the quarter amounted to $18.6 million (3.9 million DOT), with the primary spending categories being Outreach ($7.5 million), Development ($5.6 million), and Operations ($2.1 million). Approximately 30% of the spending was facilitated through departments such as Bounties and Collectives. The treasury also acquired $5.9 million in stablecoins and spent $11.9 million in stablecoins.
Transaction Fees
During Q1 2025, Polkadot Chain generated $88,300 in transaction fees (USD), representing a decline of 81.8% QoQ. However, this figure has limited implications because the network supports a narrow range of transaction types and does not host user-deployed smart contracts or dApps. Most activity involves protocol-level activities such as DOT token transfers, staking operations (like nominating validators or bonding/unbonding funds), governance actions (such as voting on referenda or submitting proposals), and rollup management (including channel operations and coretime renewals). These transactions are essential for maintaining network security, governance, and crosschain coordination, but they do not include user-deployed smart contracts or applications.
Network Analysis
Usage
Polkadot Chain activity slowed in Q1 2025. Average daily active addresses (DAAs) fell 33.9% QoQ to 4,280, while total quarterly transactions fell 25.1% QoQ to 10.3 million. The Polkadot Chain has several primary functions, including securing and connecting an ecosystem of networks like Moonbeam, Mythos, and Peaq. Consequently, end users typically transact and use the network primarily through these networks. The Polkadot Chain does support some end-user functionalities, including token transfers, staking, validator elections, and governance voting.
Security
During Q1 2025, active validators increased from 500 to 600. An active validator on Polkadot plays a crucial role in maintaining the network's security and functionality. Validators participate in consensus to produce new blocks on the Polkadot Chain and verify information in assigned rollup blocks. In return for their performance, they receive rewards in the form of DOT tokens.
Staked DOT increased 7.9% QoQ to 843.9 million DOT. Staked DOT tokens serve a dual purpose for Polkadot: they enhance security and facilitate decentralized governance. By delegating tokens to validators, nominators contribute to the network's consensus mechanism and earn staking rewards. Simultaneously, these staked tokens empower holders to participate in Polkadot's OpenGov.
Governance
Polkadot Referenda are the core mechanism of the network's OpenGov system. OpenGov enables DOT stakers to directly propose, vote on, and enact changes to the protocol. Each referendum represents a specific proposal, such as a runtime upgrade, treasury allocation, or governance rule change. Proposals are categorized into distinct "tracks" based on its scope and impact. These tracks determine parameters like voting thresholds, decision timelines, and the required level of support. In Q1 2025, total referenda decreased 22.2% QoQ to 221.
Voting power in referenda is influenced by both the amount of DOT staked and the conviction level, which reflects the duration a voter is willing to lock their tokens to amplify their vote's weight. Participation also declined, with delegated voters down 7.1% and direct voters down 28.8% over the quarter.
Despite the decline in overall participation, several impactful referenda were proposed and passed in Q1 2025:
Referendum 1391 approved a reimbursement of 1.04 million USDT to Novasama Technologies for its development of Nova Wallet, a mobile interface for the Polkadot ecosystem.
Referendum 1398 proposed a strategic partnership with G2 Esports, requesting 495,030 DOT to fund a targeted onboarding strategy aimed at converting the team’s fanbase into active Polkadot users.
Referendum 1400 reduced bridge transfer fees from Polkadot to Ethereum from 6.12 DOT to 1.49 DOT.
Referendum 1427 scheduled the Polkadot V1.4 network upgrade for Feb. 26, 2025.
Closing Summary
Polkadot’s transaction activity slowed in Q1 25, but ecosystem-level usage remained above historical levels. Networks like Moonbeam, Mythos, and peaq continued to gain traction, supported by new product rollouts and sustained user demand. Frequency, Phala, and Energy Web X maintained large shares of overall ecosystem activity, even as active addresses and Polkadot Chain usage declined.
On the developer side, core developer activity stabilized after many quarters of contraction, though ecosystem developer and commit activity dipped. Teams made meaningful progress in tooling and onboarding efforts, including enhancements to the Polkadot-API, the launch of the PAPI Console, and a full launch of the UX Audit Grants Program.
Financially, DOT declined in line with the broader market, leading to a lower treasury valuation and reduced Polkadot Chain transaction fees. Still, DOT maintained its relative rank by market cap, and the Polkadot treasury recorded its first net-positive financial outcome since reporting began. Strategic spending continued across outreach, development, and operations, and the network remained well-capitalized. Altogether, the ecosystem remained resilient with strong developer engagement and clear progress on infrastructure and user experience.
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