Web3 Foundation Allocates 40 Million Dollars for Polkadot Development Despite DOT Price Drop to Lowest Level

Crypto News- The Web3 Foundation recently revealed its ambitious plan to allocate substantial grants to support the Polkadot ecosystem, despite the declining popularity and value of the native DOT token. This announcement was made on October 10th, underlining the foundation’s commitment to fostering community-driven growth and development.

Web3 Foundation Allocates 40 Million Dollars for Polkadot Development Despite DOT Price Drop to Lowest Level

The foundation’s program has set its sights on deploying a significant sum of 20 million Swiss Francs, which equates to around $22.1 million, along with 5 million DOT tokens valued at approximately $18.8 million, throughout the course of 2024. These funds are intended to complement the Polkadot Treasury’s community-governed funding mechanism and will be directed towards projects that are deemed to have a substantial impact on the future of Polkadot.

Despite the prevailing bearish market conditions, which have resulted in a substantial decrease in the price of DOT, Polkadot has maintained its growth and development momentum. On October 10th, Dotinsights released its Q3 ecosystem progress report, showcasing the robust development activity within the Polkadot ecosystem.

Data from Santiment indicated that Polkadot remains a prominent player in the Web3 space. Q3 also witnessed a historic high in the number of active core Polkadot developers, as reported by TokenTerminal. Validator staking on the network has remained relatively stable, and nomination pools achieved a significant milestone with over 15,000 pool members in September.

Some of the top DeFi parachains on Polkadot, including Acala Network, Astar Network, Moonbeam, Parallel Finance, and Hydra, have been making notable strides. By the end of Q3, these five parachains collectively locked a total value of $125.6 million, with Moonbeam leading the pack with $37.4 million.

However, in spite of these positive developments, the price of Polkadot’s native token, DOT, has been in continuous decline. At the time of writing, DOT had dropped by 2%, trading at $3.76. This marks the lowest level for DOT since August 2020 and represents a significant loss of value since its peak during the bull market in November 2021.

Kusama (KSM), Polkadot’s canary network, has also experienced a sharp decline, trading at a three-year low and having lost 97% of its all-time high value. Despite the technical progress and activity within the ecosystem, investor sentiment and market conditions have not been favorable for these assets.