- Polygon’s ecosystem outperformed different Layer 2 options.
- Nonetheless, stakers had been seen dropping curiosity in MATIC.
Regardless of the aggressive panorama of the Layer 2 sector, Polygon managed to carry out properly. In accordance with information offered by Artemis, Polygon’s ecosystem has been thriving. Curiously, it outperformed L2 options similar 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’ information, it was noticed that Polygon’s income grew materially over the previous few months. On this matter, MATIC outcompeted different L2 options similar 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 might be attributed to its NFT and DEX exercise.
In accordance with information offered by Dune Analytics, in truth, the NFT quantity on Polygon’s community noticed an enormous spike. Due to the current surge in curiosity within the total NFT area and Polygon’s a number of collaborations and partnerships over the previous 12 months.
Nevertheless it wasn’t simply the NFT area that was driving customers to the Polygon community, DEXes had been additionally contributing. Based mostly on Dune Analytics information, 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 area recommended that customers had quite a lot of religion in its ecosystem.
Supply: Dune Analytics
Effectively, fortunately, these components 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 recommended that this bull run might come to an finish quickly.
One in all them was MATIC’s declining community progress. In accordance with Santiment’s information, the general community progress of the MATIC token has fallen significantly.
This implied that the variety of new addresses transferring MATIC had decreased considerably. It goes with out saying {that a} decline in curiosity from new addresses would affect 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 might promote their holdings for a revenue. This could, in flip, improve the promoting strain on MATIC holders.
How a lot is 1,10,100 MATIC price immediately?
One other reason for concern for MATIC token holders could 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 dropping curiosity in MATIC throughout this era. In accordance with information offered by Staking Rewards, the variety of addresses staking MATIC decreased by 0.62% over the past 30 days.
The disinterest from stakers might sign a potential bearish outlook for Polygon sooner or later. Nonetheless, if Polygon continues to point out progress in its ecosystem, it might hold the MATIC promoting strain at bay for a while.