According to a new research by Electric Capital, Polkadot ($DOT) and Cosmos ($ATOM) have the potential to outperform the overall cryptocurrency market during the next cycle, according to a famous cryptocurrency analyst and influencer.
In a video shared with his over 2.2 million subscribers on the Google-owned video-sharing platform YouTube, Coin Bureau host Guy Turner revealed that despite having less funding than competitors like Solana ($SOL) and Polygon ($MATIC), both blockchains have been able to attract and retain developers during the bear market.
According to the expert, when investors become positive, both digital assets might beat the overall cryptocurrency market, since blue-chip projects with “plenty of investment have been the least harmed by the bad market,” with some exceptions being $DOT and $ATOM.
According to Turner, “the capacity to continue establishing a developer base despite much less financing is another trait shared by both projects.” According to Daily Hodl, the expert stated that the previous cycle’s lack of enthusiasm for the projects “suggests the following one will be their chance to shine.”
According to the Electric Capital research, the number of developers for Solana, Polkadot, Cosmos, and Polygon has increased from under 200 during the 2018 crypto slump to over 1,000 presently.
The number of developers using blockchains such as Aptos (APT) increased by more than 50% year over year, while Near Protocol increased by 40% year over year. Turner, on the other hand, cautions that regulatory uncertainty and probable crypto price drops might harm companies’ capacity to retain developers.
He went on to say:
If the crypto market continues to crash, or even just move sideways, it could have a negative impact on developer retention for all crypto projects and protocols.
The expert also warned that there is a chance that US officials may come down on these ventures.
Polkadot, a blockchain network frequently referred to as a “blockchain of blockchains,” just surpassed Cardano ($ADA) to become the #1 cryptocurrency network in terms of development activity, according to CryptoGlobe.
Polkadot’s active user base increased by 300% after last year’s bitcoin market crash. Polkadot’s main blockchain, known as the relay chain, does not enable smart contracts, but other blockchains linked to it do.
As a result, Polkadot is projected to expand into a cryptocurrency ecosystem that competes with other smart contract networks such as Ethereum, the BNB Chain, and others. It was introduced in 2020 and has a variety of technical characteristics that will assist it in reaching its aim.
DOT is the Polkadot network’s native cryptocurrency and its governance token. According to CryptoCompare, DOT holders may stake their tokens to vote on network enhancements and help decide Polkadot’s destiny by actively engaging in its governance.
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