- Polygon’s ecosystem outperformed different Layer 2 options.
- Nonetheless, stakers had been seen shedding curiosity in MATIC.
Regardless of the aggressive panorama of the Layer 2 sector, Polygon managed to carry out properly. In response to knowledge offered by Artemis, Polygon’s ecosystem has been thriving. Apparently, it outperformed L2 options equivalent to Optimism and Arbitrum in varied areas.
ETH L2s comparisons ⚔️
#1 in customers: $MATIC 🟣
#1 in transactions: $MATIC 🟣
#1 in TVL: $ARB 🔵
#1 in DEX quantity: $ARB 🔵
#1 in charges: $ARB 🔵
#1 in income: $MATIC 🟣
#1 contract deployed: $ARB 🔵@0xPolygon @arbitrum dominating on fundamentals pic.twitter.com/ZSyfOdKvnz— Artemis 🏹 (@Artemis__xyz) February 18, 2023
One of many main sectors the place Polygon confirmed dominance was income technology. Based mostly on Artemis’ knowledge, it was noticed that Polygon’s income grew materially over the previous few months. On this matter, MATIC outcompeted different L2 options equivalent to Optimism and Arbitrum.
Learn Matic’s Value Prediction 2023-2024
One of many causes behind Polygon’s commendable efficiency was the rise within the variety of customers on the community.
Effectively, this noticed the variety of transactions on the Polygon community going up.
The rising curiosity in Polygon’s community may very well be attributed to its NFT and DEX exercise.
In response to knowledge offered by Dune Analytics, in truth, the NFT quantity on Polygon’s community noticed an enormous spike. Because of the current surge in curiosity within the total NFT house and Polygon’s a number of collaborations and partnerships over the previous yr.
However it wasn’t simply the NFT house that was driving customers to the Polygon community, DEXes had been additionally contributing. Based mostly on Dune Analytics knowledge, the quantity of Polygon’s DEX elevated from $69 million to $185 million within the span of two weeks.
Polygon’s dominance within the NFT and DEX house instructed that customers had lots of religion in its ecosystem.
Supply: Dune Analytics
Effectively, fortunately, these elements impacted the value of MATIC positively. Over the past week, MATIC’s worth surged from $1.23 to $1.53.
Proceed with warning
Nonetheless, there have been few metrics that instructed that this bull run may come to an finish quickly.
One in every of them was MATIC’s declining community progress. In response to Santiment’s knowledge, the general community progress of the MATIC token has fallen significantly.
This implied that the variety of new addresses transferring MATIC had lowered considerably. It goes with out saying {that a} decline in curiosity from new addresses would influence the value of MATIC negatively, within the close to future.
Furthermore, MATIC’s MVRV ratio noticed a rise. The excessive MVRV ratio meant that addresses may promote their holdings for a revenue. This might, in flip, enhance the promoting strain on MATIC holders.
How a lot is 1,10,100 MATIC price right this moment?
One other reason behind concern for MATIC token holders may be the decline in its quantity. Over the previous few days, the general quantity declined from 1.4 billion to 616 million.
Supply: Santiment
Moreover, stakers had been seen shedding curiosity in MATIC throughout this era. In response to knowledge offered by Staking Rewards, the variety of addresses staking MATIC lowered by 0.62% over the past 30 days.
The disinterest from stakers may sign a potential bearish outlook for Polygon sooner or later. Nonetheless, if Polygon continues to indicate progress in its ecosystem, it may preserve the MATIC promoting strain at bay for a while.
