The Polkadot ecosystem has significantly underperformed other Layer 1 networks in 2021, while the slow adoption of parachain auctions and mainnet launches has seen the network catch up in 2021.
It seems that this trend came to an end in mid-March, when the prices of numerous projects in the Polkadot ecosystem soared after users began to engage with networks that expanded their offerings and made a push towards Ethereum Virtual Machine ( EVM) compatibility undertook.
Here’s a look at six top moving protocols in the Polkadot ecosystem that are helping establish a presence in the cryptocurrency market.
Interoperability is key
Interoperability has been one of the driving themes of the cryptocurrency market over the past year, and Moonbeam (GMLR) and Astar (ASTR) are two Polkadot parachains focused on establishing multichain compatibility with other Ethereum networks.
Moonbeam is a smart contract parachain aimed at simplifying the use of Ethereum developer tools to build or redeploy Solidity projects on Polkadot’s substrate-based environment.
It was the first parachain to go live on the Polkadot mainnet and plans to bring on-chain governance, staking, and cross-chain integration into Ethereum’s base feature set.
Astar is a decentralized application (DApp) hub supporting a variety of standards including Ethereum, WebAssembly (WASM) and Layer 2 solutions such as zk-Rollups. The goal of the protocol is to become a multichain smart contract platform capable of supporting multiple blockchain networks and virtual machines.
Since its launch in late January, the Astar network has peaked at $1.47 billion and the metric currently stands at $1.31 billion, according to data from DefiLlama.
Moonbeam and Astar provide an important service to the Polkadot ecosystem because the Polkadot Relay Chain does not support smart contracts.
Polkadot’s DeFi ecosystem is still in its infancy
The decentralized finance (DeFi) ecosystem on Polkadot has started to gain traction thanks to new developments from Acala and Centrifuge.
Acala has taken a major role in Polkadot’s DeFi ecosystem by bringing its first native stablecoin – a USD – to the network.
Stablecoins have become a fundamental part of the underlying DeFi infrastructure and the addition of aUSD launches a decentralized stablecoin powered by Polkadot (DOT), DOT derivatives and eventually by cross-chain assets such as Bitcoin (BTC) or Ether ( ETH) is secured ).
With Acala and aUSD, the Polkadot ecosystem has now joined Terra, Frax Share and Curve Finance in the ongoing “stablecoin wars” that have become a dominant theme in DeFi development.
Centrifuge is a decentralized asset finance protocol designed to bridge the real world with DeFi by tokenizing assets such as bills, real estate, and royalties.
The main goals of the protocol are to help users earn profits not tied to cryptocurrency investments, reduce the cost of capital for small to medium-sized businesses, and provide investors with a stable source of income.
Centrifuge allows companies to use tokenized real assets as collateral to access funding via the Tinlake DApp lending protocol.
Acala, nine parachain teams and a group of venture funds launched the $250M aUSD Ecosystem Fund ️
— Acala (@AcalaNetwork) March 23, 2022
Acala and Centrifuge are contributing to the $250 million aUSD Ecosystem Fund, which launched March 23, just before the Polkadot ecosystem began to soar.
Web3 Pivot catalyzes growth
Web3 is another buzzword trending in the crypto ecosystem, and the term is really just a fancy term for the integration of blockchain technology with the internet.
Saito and Kylin are two protocols in the Polkadot ecosystem focused on facilitating Web3 development through scalability and data management.
Saito is a blockchain network designed to process terabytes of data by paying rewards to peer-to-peer (P2P) network nodes, rather than miners or staking as a method of providing a permissionless and scalable network use.
This functionality is needed to one day run decentralized versions of popular websites like Twitter, Facebook, and Amazon, which currently hold a monopoly on Web2.
Kylin has taken the lead in managing data in the Polkadot ecosystem by deploying a decentralized data infrastructure solution called DeData for Web3. The Kylin ecosystem consists of a data oracle, data analytics, and a data marketplace.
Kylin Data Analytics is a set of tools designed for data warehouses that extract meaningful data results, patterns, and interpretations while implementing cost-effective commercialization capabilities to the public.
The Kylin data oracle is an advanced decentralized data-feeding protocol capable of processing any type of data on- and off-chain in a validated manner.
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https://cointelegraph.com/news/altcoin-roundup-interoperability-push-puts-attention-back-on-polkadot Interoperability push draws attention back to Polkadot