Top Polkadot and Kusama Projects to Watch in 2026

Polkadot launched parachains in late 2021 with enormous expectations. The vision of a heterogeneous multi-chain ecosystem with shared security and native interoperability captured imaginations across the crypto space. Now, heading into 2026, the reality looks different from those early projections — but not necessarily worse.

The Polkadot ecosystem today has 50+ active parachains and approximately $150-200M in total value locked across its top protocols. That’s not Ethereum or Solana territory, but it represents a stable, focused ecosystem that survived the 2022-2023 bear market and emerged with serious infrastructure. The projects that remain are builders, not speculators. If you’re new to how Polkadot works, our architecture guide explains the relay chain, parachain, and XCM messaging concepts.

The year 2025 brought substantial technical upgrades to the network: Asynchronous Backing improved block times and throughput, Agile Coretime replaced the rigid auction model with flexible compute allocation, and Elastic Scaling enabled parachains to dynamically scale their processing power. Gavin Wood returned as Parity CEO in August 2025, refocusing efforts on usability and developer experience. This article examines the projects worth watching as we move into 2026.

The State of Polkadot in 2025

Let’s be honest about where Polkadot stands. The ecosystem is smaller than early boosters predicted. Some projects from the 2021-2022 hype cycle pivoted or faded. But the technical foundation is arguably the most sophisticated in the industry.

The network currently hosts approximately 50 active parachains, down from the peak of hype-driven launches but representing genuine consolidation. Total ecosystem TVL sits around $150-200M across the major DeFi protocols — modest by Ethereum standards, but stable and growing. For context on how Polkadot differs architecturally from Ethereum, see our comparative analysis.

Key 2025 developments reshaped the ecosystem. Polkadot 2.0 transitioned from concept to reality with Elastic Scaling and Agile Coretime. PolkaVM introduced Solidity compatibility, lowering the barrier for Ethereum developers. The JAM (Join-Accumulate Machine) protocol began taking shape as Gavin Wood’s next evolution of the network architecture. Enterprise partnerships continued expanding, with Deutsche Telekom, Sony, and Toyota maintaining active involvement.

The projects that survived the bear market share common traits: real products, active development teams, and sustainable tokenomics. Here are seven worth watching.

Top Projects to Watch in 2026

SORA

SORA represents one of the most ambitious projects to emerge from the Polkadot ecosystem — and one that’s now evolving beyond it. At its core, SORA is building a decentralized autonomous economy centered on the XOR token, an elastic supply currency designed to provide stable purchasing power over time.

The ecosystem includes Polkaswap, a cross-chain DEX that enables liquidity aggregation across multiple networks. SORA’s economic model integrates XOR (the primary token), VAL (validator rewards), and PSWAP (liquidity provision incentives) into a coherent system. For a deep understanding of this tokenomics structure, see our guide to XOR, VAL, and PSWAP and the complete SORA ecosystem overview.

The major 2025-2026 development is SORA’s transition from Substrate (SORA v2) to Hyperledger Iroha 3 (SORA v3, also called SORA Nexus). This is not a minor upgrade — it’s a fundamental architectural shift. Nexus uses the IVM (Iroha Virtual Machine) with Kotodama bytecode — a purpose-built deterministic runtime rather than WASM (which SORA v2 used via Substrate). The Fujiwara testnet has been validating this new architecture throughout 2025.

Why does this matter? SORA is positioning itself as a politically neutral hub chain designed for CBDC interoperability and institutional DeFi. Rather than remaining a Polkadot parachain, it’s becoming an independent blockchain network with bridges to Polkadot, Ethereum, and other chains. Our SORA Nexus complete guide covers the technical details and roadmap.

Moonbeam

Moonbeam solves a straightforward problem: Ethereum developers know Solidity, Hardhat, and the EVM. Moonbeam brings that entire toolchain to Polkadot. Deploy your existing Ethereum smart contracts with minimal changes, access Polkadot’s shared security, and use XCM for cross-chain messaging.

The numbers reflect this value proposition. Over 300 teams have launched on Moonbeam, and TVL sits around $50-80M. Notably, Uniswap V3 deployed on Moonbeam, bringing a major DeFi primitive to the Polkadot ecosystem. Moonriver, Moonbeam’s sister network on Kusama, serves as the canary deployment environment.

Moonbeam matters for 2026 because it’s the primary on-ramp for Ethereum developers exploring Polkadot. As PolkaVM matures and Polkadot’s Solidity compatibility improves, Moonbeam’s head start with the EVM developer community gives it a strong network effect. For developers evaluating where to build cross-chain dApps, Moonbeam offers the lowest friction entry point to Polkadot. Our DEX comparison includes Polkaswap and other decentralized exchanges in the ecosystem.

Acala

Acala won the first Polkadot parachain auction in November 2021, positioning itself as the DeFi hub of the ecosystem. The platform offers aUSD (a multi-collateral stablecoin), LDOT (liquid staking for DOT), and a native DEX for token swaps.

The project faced challenges — the August 2022 aUSD depeg incident resulted from an exploit that minted billions of unbacked stablecoins. The team responded by burning the incorrectly minted tokens and rebuilding trust through transparent recovery efforts. Today, Acala shows approximately $69M in TVL and continues developing EVM+ compatibility for Solidity developers.

Acala matters because it provides core financial infrastructure that other parachains depend on. Stablecoins and liquid staking are foundational DeFi primitives, and Acala’s position as the first parachain winner gave it distribution advantages that persist today. The 2026 focus will be on expanding EVM+ adoption and deepening cross-chain liquidity through XCM integrations.

Astar

Astar takes a different approach: rather than forcing developers to choose between EVM and WASM, it supports both. Write smart contracts in Solidity or Ink! (Rust-based WASM contracts) and deploy them on the same network. This flexibility, combined with Astar’s “dApp staking” mechanism where community members can stake ASTR directly on projects they support, creates a unique development environment.

Enterprise traction sets Astar apart from pure DeFi plays. Sony Network, Toyota, and over 100 enterprises through the Astar Japan Lab partnership use the network for Web3 initiatives. Astar 2.0 launched in 2025, improving the core infrastructure and expanding cross-chain capabilities. Current TVL sits around $30M.

For 2026, Astar’s enterprise focus in Asia — particularly Japan and South Korea — positions it as the bridge between traditional business and blockchain infrastructure. The dual VM support makes it a strong choice for development teams uncertain whether EVM or WASM will dominate long-term. Our WASM vs EVM comparison explores the technical tradeoffs between these approaches.

Hydration

Hydration (formerly HydraDX) attacks liquidity fragmentation — one of the core problems in multi-chain ecosystems. Its Omnipool design enables single-sided liquidity provision, meaning you can deposit just one asset rather than paired tokens required by traditional AMMs.

This capital efficiency matters in an ecosystem where liquidity is spread across 50+ parachains. Hydration aggregates liquidity into one pool, reducing slippage for traders and improving yields for liquidity providers. The protocol shows approximately $41M in TVL and completed its rebrand from HydraDX to Hydration in 2024.

As Polkadot’s cross-chain messaging matures through XCM improvements, protocols like Hydration that can aggregate fragmented liquidity become increasingly valuable. The 2026 roadmap focuses on deeper XCM integrations and expanded asset support across the parachain ecosystem.

Phala Network

Phala Network provides privacy-preserving computation using Trusted Execution Environments (TEE). Smart contracts running on Phala can process encrypted data without exposing it to validators or other network participants.

The practical applications extend beyond simple privacy. Phat Contracts enable off-chain computation with on-chain verification — useful for oracle operations, AI inference, and any workload requiring confidential data handling. Phala also operates cross-chain bridges to Ethereum, Bitcoin, and other networks.

For 2026, Phala’s positioning at the intersection of privacy and AI infrastructure becomes increasingly relevant. As on-chain AI applications grow, the ability to run confidential computation without exposing sensitive data or models provides a valuable primitive. Enterprise applications requiring compliant data handling also benefit from TEE-based confidentiality.

KILT Protocol

KILT Protocol addresses digital identity — specifically, decentralized identifiers (DIDs) and verifiable credentials. Users control their own identity data, choosing what to share and with whom. Verifiers can confirm credentials without accessing underlying personal information.

The enterprise angle distinguishes KILT from purely crypto-native identity projects. A partnership with Deloitte brings KILT’s technology to enterprise credential verification use cases. Real-world applications include KYC compliance, professional certifications, and academic credentials — areas where trusted verification without data exposure creates tangible value.

Identity infrastructure is foundational for compliant DeFi and institutional adoption. As regulatory requirements around KYC/AML evolve, protocols like KILT that enable privacy-preserving compliance become enabling technology for the next wave of blockchain applications.

Honorable Mentions

Several other projects maintain active development and deserve mention. Bifrost provides liquid staking infrastructure with approximately $44M in TVL, enabling DOT and KSM holders to earn staking rewards while maintaining liquidity. Centrifuge focuses on real-world asset tokenization, bringing invoices, real estate, and other traditional assets on-chain. Unique Network builds NFT infrastructure, while Interlay operates a trustless Bitcoin bridge (iBTC) for bringing BTC into the Polkadot ecosystem. Manta Network develops zero-knowledge privacy solutions using a different technical approach from Phala’s TEE-based model.

What Happened to the Others?

Honest assessment requires acknowledging that some projects from the 2021-2022 hype cycle have faded or pivoted. Ocean Protocol, once featured prominently in Polkadot ecosystem lists, shifted its focus beyond the network. RMRK, the innovative NFT platform, has become less active. Some parachains chose not to renew slot leases after their initial terms expired.

This consolidation is normal for emerging technology ecosystems. The projects that remain — SORA, Moonbeam, Acala, Astar, Hydration, Phala, KILT — demonstrated staying power through a brutal bear market. That survival filter provides useful signal about which teams are serious builders.

Why Polkadot Still Matters

Despite lower adoption than Ethereum or Solana, Polkadot’s technical advantages remain compelling for specific use cases. Shared security means parachains don’t need to bootstrap their own validator sets — they inherit security from the relay chain’s staked DOT. Native interoperability through XCM enables cross-chain messaging without external bridges and their associated security risks.

Forkless upgrades allow governance-approved changes to deploy without hard forks, reducing the coordination overhead and network disruption common in other ecosystems. The Substrate framework provides production-grade blockchain development tooling that’s been battle-tested across 50+ networks. For more on these architectural advantages, see our guides on parachain benefits and the complete parachains overview.

Enterprise interest persists. Deutsche Telekom runs validator infrastructure. Sony and Toyota build on Astar. Government CBDC pilots use Hyperledger Iroha (connected to SORA’s ecosystem). These aren’t retail speculation plays — they’re institutional infrastructure bets.

Looking Ahead to 2026

Several developments will shape the Polkadot ecosystem in the coming year. Polkadot 2.0 maturation will test whether Elastic Scaling and Agile Coretime deliver on their promise of flexible, efficient compute allocation. SORA Nexus mainnet will demonstrate whether the hub chain architecture can achieve its vision of politically neutral global interoperability.

PolkaVM and expanded Solidity support will continue lowering barriers for Ethereum developers considering Polkadot deployment. The JAM protocol, Gavin Wood’s next evolution of Polkadot’s architecture, will move from research to implementation. Institutional DeFi applications combining KILT identity, compliant protocols, and cross-chain liquidity may find product-market fit as regulatory clarity improves.

The question for 2026 isn’t whether Polkadot will suddenly match Ethereum’s TVL — it won’t. The question is whether its technical sophistication translates into sustainable adoption for the cross-chain, interoperable use cases it was designed to serve.

Frequently Asked Questions

Conclusion

The Polkadot ecosystem heading into 2026 looks different from the 2021 hype cycle predictions. It’s smaller, more focused, and populated by projects that survived a brutal bear market. SORA, Moonbeam, Acala, Astar, Hydration, Phala, and KILT continue building real products with genuine utility.

Whether Polkadot’s technical advantages — shared security, native interoperability, forkless upgrades — translate into broader adoption remains an open question. The projects highlighted here represent the strongest bets on that thesis paying off. For those interested in interoperability and cross-chain DeFi, they’re worth watching as the next phase of blockchain infrastructure development unfolds.