Polygon’s DeFi space witnesses growth but for how long will it help MATIC
- Polygon’s Total Value Locked (TVL) registered a downtick
- Metrics were supportive of a continued surge
DeFiLlama’s recent data revealed that in the past week, Polygon [MATIC] stood out after having the newest Defi protocols listed. This development looked promising for Polygon, which has been witnessing a decline in its total value locked for several weeks now.
https://twitter.com/sandeepnailwal/status/1597961215741145091?s=20&t=mL6Q8ih8XdtBikO2idAEmA
Even though MATIC’s TVL was following a downslope, DeFiLlama’s chart pointed out that the TVL later registered an uptick. And, at the time of writing, it stood at $75.11 billion.
Furthermore, the top DeFi projects by fees and revenue on the Polygon network in the last 24 hours included Quickswap DCX, Uniswap, and Polygon, sitting at the top of the list.
Read Polygon’s [MATIC] Price Prediction 2023-24
Top DeFi Projects by Fees and Revenue on @0xPolygon Ecosystem Last 24H $QUICK @QuickswapDEX$UNI @Uniswap$MATIC @0xPolygon$AAVE @AaveAave$DODO @BreederDodo$SUSHI @SushiSwap$MVX @MetavaultTRADE$CRV @CurveFinance$STG @StargateFinance$BANANA @ape_swap#POLYGON $MATIC pic.twitter.com/KaHyZVV0XM
— NFTevening ɢᴍ (@NFTevening) November 30, 2022
That said, MATIC’s price also corresponded to these positive developments, as its weekly and daily charts were painted green.
As per CoinMarketCap’s data, MATIC registered over 6% and 5% increases in its price during the last 24 hours and the past week, respectively. At press time, MATIC was trading at $0.9197 with a market capitalization of more than $8 billion.
Though this uptick managed to put a smile on investors’ faces, let’s have a look at MATIC’s on-chain metrics to find whether this surge is sustainable.
Everything seemed fine
On the metrics front, things were looking pretty good for MATIC. Its exchange reserve was decreasing, which is a positive signal as it indicated lower selling pressure.
CryptoQuant’s data revealed that MATIC’s active addresses and the number of transactions were also increasing, which was yet another good signal for the token.
Moreover, MATIC’s volume skyrocketed recently, which reduces the chances of an unprecedented price decline in the coming days. The crypto community’s faith in MATIC also seemed to have increased over the past week as its positive sentiments registered quite a few spikes lately.
