Crypto trader Nonzee's analysis provides a detailed look into Polkadot's evolution, its rise, and subsequent decline.
History and Initial Success of Polkadot
Polkadot was launched with significant enthusiasm and backing. In 2017, the project raised $144 million within minutes through its ICO, followed by an additional $43 million in private investment rounds. By 2021, Polkadot was deemed an 'Ethereum killer', offering a new parachain model for Web3 infrastructure. Yet, despite these initial achievements, the project struggled with adoption.
Technical Difficulties and Developer Attrition
A major issue highlighted by Nonzee was the difficulties developers faced when building on Polkadot. The network is based on Substrate and Rust, which are considered less beginner-friendly compared to EVM chains. This technical complexity discouraged many developers from engaging with the ecosystem. Additionally, the existence of both Polkadot and Kusama networks caused confusion regarding their distinct roles.
Declining Usage and Governance Challenges
Nonzee notes a consistent decline in user activity and developer participation from 2021 to 2025. By 2025, the network had fewer than 5,000 daily active users across all parachains. Governance, once a standout feature of Polkadot, became dominated by whales, with treasury expenditures of over $129 million in 2024, leading to decreased voter turnout and eroded community trust.
Despite advancements in technology, such as Polkadot 2.0, Nonzee argues that the lack of users and compelling applications renders the network functionally obsolete. Without a real-world killer application to drive adoption, Polkadot risks becoming a sophisticated but underutilized infrastructure in the blockchain ecosystem.
