MATIC plunges 5% in 24 hours despite Polygon’s efforts

• Development activity on the Polygon network surged.
• The volumes of Polygon NFTs reached new highs even as MATIC’s price fell.

Recently, Polygon [MATIC] was able to drive large amounts of activity on its network while its NFT volumes rose. But despite these efforts, the price of MATIC plunged by over 5% in the last 24 hours.

A growing number of developments

Analysis of data, encompassing over 485 million code commits across 818,000 open-source repositories related to Polygon, provided valuable insights into developer trends and behaviors.

Notably, Polygon’s Proof-of-Stake (PoS) chain emerged as the second most favored choice among first-time developers, trailing only Ethereum [ETH]. This underscored the appeal of Polygon’s chain among developers.

The data also revealed that 2023 marked a significant year for multichain development, with 30% of developers supporting more than one blockchain.

Among these, Polygon PoS stood out as one of the most interconnected with Ethereum.

Despite an overall reduction in the number of developers, there were 22,000 monthly active developers on the protocol, showcasing a more globally distributed presence in the development landscape.

Surprise, surprise. Developers are developing on Polygon protocols.

The 2023 @ElectricCapital Developer Report is here. A closer look at some of the data:

Over 485 million code commits, across 818k open-source repositories, were fingerprinted for insight into developer trends… pic.twitter.com/YifgEgCmxw

— Polygon (Labs) (@0xPolygonLabs) January 22, 2024

NFT volumes on the rise

The surge in development activity could help attract new users to the Polygon network. Moreover, there was a growth in interest in NFT volumes on Polygon as well.

Notably, in the past 30 days, a remarkable surge in Polygon’s NFT volume has occurred, witnessing a substantial 71% increase.

The number of NFT buyers on the network also saw a noteworthy uptick, registering a notable 47% rise. These metrics highlighted the growing popularity and utilization of Polygon’s NFT ecosystem.

The increased volume and buyer participation also suggested heightened interest and engagement within the Polygon NFT marketplace.

NEW:

Over the last 30 days, Polygon NFT volume has increased 71% and NFT buyers have increased 47%. pic.twitter.com/dxTdplcCr3

— Today In Polygon (@TodayInPolygon) January 21, 2024

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MATIC continues to bleed

Despite these positive developments, MATIC’s price fell by 5.05% in the last 24 hours, trading at $0.716. This massive decline could be a symptom of a larger bearish trend, triggered by Bitcoin’s [BTC] recent correction.

However, if the bearish movement of MATIC persists, it could be a symptom of a larger problem for the altcoin.

Source: Santiment