Polkadot the most commonly held altcoin among hedge funds — Report

Key Takeaways:

  • •After Polkadot, ROSE and NEAR were the most held assets among VCs and hedge funds.
  • •Smart contracts were the most invested category in Q4 2021.
Polkadot
Polkadot was the most sort after digital assets in the fourth quarter of 2021.

LAGOS (CoinChapter.com) — Polkadot was the most commonly held altcoin by hedge funds in the fourth quarter of 2021, a study has found.

Cryptocurrency data analytics firm, Messari, reported that 42% of hedge funds in Q4/2021 held Polkadot. Meanwhile, it also found that 24 of the world’s 57 most prominent fund managers gained exposure in the so-called Ethereum rival.

Polkadot
Most commonly hed asset by crypto funds in Q4/2021. Source: Messari

Messari credited the growth of the Polkadot ecosystem to its cross-chain interoperability, noting that the protocol would continue to remain influential in the crypto space as projects vie to secure slots on its blockchain platform

Polkadot is currently the 10th largest cryptocurrency with a market cap of more than $19 billion. The token at the time of publication was trading at US$17.69 with a 24-hour trading volume of $490,226,472, according to Coingecko.

Oasis Network, NEAR Protocol Ranked High Among VCs and hedge funds

Meanwhile, after Polkadot, Oasis Network and Near Protocol were the most commonly held assets among VCs and hedge funds. Messari’s report disclosed that 19 out of the world’s 57 leading fund managers invested in Oasis Network (ROSE). This was just as it noted that 16 prominent fund managers invest in Near Protocol (NEAR).

Terra (LUNA), dYdX (DYDX), and Mina (MINA) were also ranked as the fourth, fifth, and sixth most popular assets, respectively. Meanwhile, LUNA topped its list as the highest-circulating market capitalization.

Messari revealed that Terra rallied remarkably in Q4 of 2021 to surpass Solana, Polkadot, and Avalanche. This growth was impressive because these assets were ahead of Terra in Q3. It further revealed that Nervos Network (CKB) in Q4 of 2021 possesses the lowest-circulating market capitalization of the top thirty assets.

Smart Contracts Were The Most Invested Category

The report also noted that the smart contracts sector received the most investment in the latter part of 2021.

Polkadot
Smart contract platforms remain the most heavily invested category. Source: Messari

The growth of smart contracts in the blockchain space has been attributed to the competitive nature of the sector. The struggle between funds and projects to scale and build superior smart contract alternatives invariably boost the sector.

The data analytics firm also pointed out that four of the top five invested assets in Q4 of 2021 were smart contract platforms. It said:

“Given how Oasis Network, NEAR Protocol, and Mina are still gaining traction within the smart contract landscape. Time will tell how they match up against industry leaders like Ethereum, Cosmos, Polkadot, and Solana.”

The study also noted that other market sectors recorded slight growth or didn’t develop. It revealed that Filecoin (FIL) and Arweave (AR) brought mild growth to the file storage sector. And funds continue to flow into creating and developing Web3, blockchain.

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Polkadot, Polkadot the most commonly held altcoin among hedge funds — Report

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