- Polygon’s ecosystem grew, however its TVL couldn’t compete with different L2 options.
- MATIC confirmed bearish indicators regardless of rising costs.
Despite the fact that Polygon [MATIC] has been seeing progress within the DeFi area, different L2 options corresponding to Arbitrum and Optimism [OP] have out-competed it by way of TVL. Nonetheless, this might change with the rising exercise of dApps on Polygon.
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One such well-performing dApp has been QuickSwap. Notably, in response to data launched on 19 February, it was noticed that QuickSwap might generate large quantities of charges for a number of protocols.
One other dApp that confirmed progress was Planet IX, a play-to-earn dApp that witnessed a 22.07% surge within the variety of distinctive lively wallets on the protocol. Together with that, the variety of transactions made on the platform additionally elevated throughout this era.
Supply: Dapp Radar
The progress of those dApps helped enhance the present state of Polygon’s ecosystem. One other growth that aided Polygon could be the deployment of Compound v3 on the Polygon Mainnet.
These developments impacted Polygon’s TVL, which elevated materially during the last month. In response to DeFI Lama, Polygon’s TVL elevated from $1.01 billion to $1.21 billion. Regardless of this spike, Polygon was nonetheless distant from the likes of Arbitrum and Optimism, which boasted of TVLs of $3.26 billion and $1.88 billion, respectively.
Supply: Defi Llama
Not solely has Polygon not been capable of carry out in addition to its opponents within the DeFi area, its token exercise has additionally taken a success.
Bears come for MATIC?
In response to Santiment’s knowledge, the every day lively addresses transferring MATIC have declined. Consequently, the variety of MATIC transfers additionally fell. This was steered by the declining switch rely of MATIC.
Reasonable or not, right here’s MATIC’s market cap in BTC’s phrases
Polygon wasn’t capable of drive the eye of its NFTs in February 2023 in addition to its total NFT commerce rely declined immensely over the previous few weeks, as per Santiment.
Supply: Santiment
Regardless of Polygon’s enhancements in its ecosystem, it nonetheless could have an extended option to go earlier than it might catch as much as its opponents within the L2 area.