Polkadot 2.0 Launch Adds Elastic Scaling and XCM v5 to Boost Cross-Chain Efficiency

Polkadot 2.0 launches with Elastic Scaling, XCM v5, and JAM to enhance cross-chain performance.

3M DOT allocated to DeFi programs like Omnipool and StellaSwap to grow network liquidity.

Partnerships expand with Unity, Heroic esports, and a proposed $8.8M Inter Miami deal.

Polkadot continues to grow in 2025, supported by major protocol upgrades, new partnerships, and increasing developer engagement. The network's long-term roadmap is progressing, while treasury activity and governance participation remain active. With DOT trading around $3.59, momentum is building for the multichain ecosystem as adoption rises across several fronts.

Core Upgrades and Infrastructure Advancements Underway

According to analysis prepared by Frirdrich via X, Polkadot 2.0 officially launched in May 2025, introducing Elastic Scaling and XCM v5 for improved cross-chain functionality. These upgrades enable more efficient communication between parachains and offer expanded support for rollups through the Join-Accumulate Machine (JAM) framework

The Polkadot Hub has also prioritized Ethereum Virtual Machine (EVM) compatibility, targeting full integration by December 2025. This will allow Ethereum-based applications to operate on Polkadot, helping developers transition seamlessly

Meanwhile, on Kusama, Agile Coretime has gone live, and asynchronous backing is undergoing early testing. These developments are aimed at improving network performance and execution speed.

Treasury, DeFi Expansion, and New Partnerships

Treasury activity recorded a $25 million outflow in April 2025, with the community now discussing long-term spending frameworks. Structured proposals have been introduced to guide ecosystem investment and development support.

Source: CryptonautX(X)

According to data reviewed by CryptonautX, 3 million DOT have been allocated to DeFi initiatives, including liquidity mining on Omnipool and StellaSwap. This allocation aims to grow Polkadot’s presence in the decentralized finance space by increasing user incentives.

Partnership activity has also expanded, including Unity integration for game development, Heroic esports collaboration, and an ongoing proposal involving Inter Miami valued at $8.8 million. On the governance side, OpenGov registered 2,136 unique voters in April 2024, reflecting active community engagement in protocol-level decisions.

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