- Polygon’s MATIC has declined by 1% in the last seven days, however, its Proof of Stake (PoS) network has witnessed 1 million daily active addresses for 30 straight days.
- Polygon’s DeFi sector has unfortunately declined as Total Value Locked falls from $1.1 billion to $890 million.
The Polygon ecosystem has over the past couple of months demonstrated resilience and sustained growth despite a revenue dip and an extensive bearish trend plunging the year-to-date growth of its native token, MATIC, by 27%. One area of growth has been the daily active addresses. According to reports, the Polygon’s Proof of Stake (PoS) network has consistently recorded 1 million daily active addresses for 30 consecutive days now.
As interpreted by analysts, this suggests a growing interest and usage in MATIC and the overall Polygon ecosystem. The primary reason for this milestone is the high interest shown in Polygon’s NFT sector. Crypto News Flash review of Artemis’ data discloses that the NFT trading volume for Polygon has surged significantly in the past few days with CyberKongz and Cryptokhat recording significant interest over the period.
A quick look at the historical performance of this year’s NFT trading volume for Polygon shows nothing but consistency. In January, the NFT trading volume reached $10.5 million, more than double Solana’s $4.1 million. At that time, the growth in inscriptions on Polygon was linked to the surge in NFT sales volume.
Price of Polygon (MATIC) Declines Despite NFT Trading Volume Boom
At press time, Polygon was ranked third on the list of top NFT collectible sales behind Ethereum and Bitcoin. Interestingly, the performance of Polygon’s Decentralized Finance (DeFi) sector is quite disappointing as the Total Value Locked (TVL) attached to the network falls from $1.1 billion to $890 million. On top of that, the Decentralized Exchange (DEX) volume on the Polygon network has declined significantly. According to market analysts, users have resorted to alternate platforms for their Defi-related activities. As expected, this has had a marginal impact on the MATIC price action as it fails to “join the post-halving rally”.
Katie Talati, director of research at digital-asset management firm Arca has linked the underperformance of MATIC to the departure of former Polygon President Ryan Wyatt.
The second reason for the underperformance is that Ryan Wyatt, the former president of Polygon, left last year to join as the head of business development for Optimism. Many believe that Wyatt was responsible for Polygon’s big partnerships, and his exit has been a considerable blow to Polygon’s growth efforts.
As of the time of writing, MATIC was down by 1% in the last seven days, trading at $0.73.
Despite the decline, the total number of addresses holding MATIC has grown with those holding between $1,000 to $100,000 worth of MATIC accounting for 7.7% of the total addresses by holding.
Whales’ involvement is confirmed in a recent publication by Crypto News Flash, disclosing the transfer of 1.9 million MATIC tokens ($1.41 million) from the Binance exchange to a decentralized on-chain wallet. This is said to signal a bullish outlook with crypto analyst Ali Martinez also predicting a $1 price point for the asset. However, his prediction is subject to the condition that the asset manages to sustain its strength above $0.87.
