- Origin Trail will play a significant role in establishing a solid foundation for AI on Polkadot and Web 3.0.
- There has been a concerning decline in funding and development activity for the Polkadot ecosystem in Q2 2023.
Polkadot (DOT) stands out from its counterparts by placing a strong emphasis on artificial intelligence (AI), which has contributed to its flourishing ecosystem. The proof-of-stake (POS) blockchain protocol has revealed substantial progress in AI within the Polkadot ecosystem.
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The rise of AI creates unprecedented opportunities for progress but also amplifies the challenge of misinformation. @Origin_trail is on a mission to tackle misinformation with AI-ready Knowledge Assets.Visit their new website to learn more:https://t.co/ZLgtPYwgEN
— Polkadot (@Polkadot) July 3, 2023
Since AI and cryptocurrency are still in their early stages, much misinformation has been circulating. Polkadot has capitalized on this situation by highlighting the importance of Origin Trail, a decentralized knowledge graph that facilitates the availability of AI-compatible knowledge assets, allowing anyone to participate in trustworthy knowledge sharing. The emergence of Origin Trail will play a significant role in establishing a solid foundation for AI on Polkadot, Web 3.0, and the wider technology industry.
Currently, the capabilities of Origin Trail are being tested extensively, including a demonstration by founder and CTO Branimir Rakic, who presented an AI-powered semantic search utilizing the protocol’s knowledge assets at the recent Polkadot Decoded event. Each blockchain protocol has its unique characteristics, and Polkadot stands out with its distinctive approach that allows the development of parachains capable of hosting decentralized applications and smart contracts.
Among the prominent parachains are Astar Network and Moonbeam, which have generated significant attention in the industry this year. For instance, Astar Network collaborated with automotive giant Toyota to organize a talent hackathon in February. Polkadot’s venture into the realm of AI aims to support an industry widely predicted to become deeply intertwined with cryptocurrency soon.
Evaluation of Polkadot in Q2 and the Outlook for Q3
Polkadot Insider, a well-known Twitter account that shares updates about the Polkadot ecosystem, recently shared a tweet disclosing an increase in funding for the network’s research and development (R&D) endeavors. According to the tweet, funding has experienced growth since the final quarter of 2021, with notable allocations going to Astar Network, Unique Network, and Darwinia.
📚 The @Web3foundation grants program funds software development & research in the field of decentralized protocols
⛏️ Let's explore the Number of Projects Funded by #W3F Grant from Q1/2019 to Q2/2023
The top 3 Projects that received the most, include:
🥇 @AstarNetwork
🥈… pic.twitter.com/j86A8YX7oP— Polkadot Insider (@PolkadotInsider) July 2, 2023
However, despite the promising growth, there has been a concerning decline in funding and development activity for the Polkadot ecosystem in Q2 2023. Not only did funding decrease in the last quarter, but a similar trend was also observed in the blockchain’s development activity.
Similarly, the last quarter witnessed a decrease in the blockchain’s popularity, as indicated by its low social volume. Furthermore, the sentiment surrounding DOT remained predominantly pessimistic, as reflected by the weighted sentiment chart consistently leaning towards the negative side.
Likewise, the token experienced a corresponding decline in its price. Following a peak in mid-April, the price trend turned bearish. As of the current writing, DOT is trading at $5.48, boasting a market capitalization exceeding $6.5 billion. However, the outlook for the new quarter appears promising, as the token’s price action has recently shifted to a bullish trajectory.
The demand for DOT in the derivatives market experienced an increase, evident from the green Binance funding rate. Additionally, the 4-week price volatility of DOT slightly rose after a period of decline, enhancing the likelihood of a continued upward trend.
