Assessing what’s driving Polkadot’s [DOT] appeal

Polkadot is still one of the most appealing investments in the crypto market and is the most commonly held crypto by funds. According to a new report, most of the famous cryptocurrency funds have DOT tokens in their portfolio.

This report is the result and analysis of 53 common crypto funds. The amount of funds holding Dot is a lot more than the second and third investments. But we see most of the famous blockchains on the list.

Messari Q3'21 Fund Screener Analysis

.@Polkadot Remains the most commonly held liquid asset of the 53 funds we've tracked.

Tied for second are:
• @terra_money
• @NEARProtocol
• @OasisProtocol pic.twitter.com/17QsvqKGHg

— Mason Nystrom (@masonnystrom) November 17, 2021

According to a list published by Messari and tweets by Mason Nystrom, in a list of 53 crypto funds, 21 of them have Polkadot in their portfolio. It’s the most commonly held liquid asset on the list. NEAR Protocol and Oasis Network are the second and third most common tokens in the funds. 13 funds of the list hold these two next to the Terra blockchain. You can see some older tokens like Uniswap in the list, too. The famous Solana records for 12 funds in this list.

There are many reasons behind why many funds are investing in Polkadot. This blockchain is one of the most famous and efficient alternatives for dApp development and offers lots of tools and features for both users and developers. Besides, the Kusama blockchain has resulted in meaningful attraction for this ecosystem by letting numerous developers launch their first versions of apps with full features and economic incentives.

Besides, projects looking for investments in their slot auctions may be looking at all of these investors for support in auctions. According to his tweet:

“As parachains auction take off, expect many protocols to be looking to the various funds that have invested in DOT and can therefore influence which projects receive early slots.”

Another interesting piece of data from Messari’s latest report is that many funds are interested in smart contract platforms. The report says that 32% of invested blockchains are smart contract platforms, while only 16% of them are decentralized exchanges. It can be the reason we see only ten funds investing in Uniswap. The most DEX token held is DODO.

The information above is from Messari’s Q3’21 report. The interesting point is that Polkadot has been the first invested cryptocurrency in the last reports in Q2’2021 and Q1’2021, too. It can mean that crypto funds are becoming very confident about this blockchain and the ecosystem around it, as well.