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Can Polygon’s growing ecosystem keep MATIC holders warm this crypto winter?

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  • Polygon witnesses significant growth in its Defi and NFT space
  • However, the sentiment against Polygon declined

According to new data posted by Polygon, the layer 2 solution was observed to be improving its presence in the DeFi space. This was indicated by the number of liquid staking derivates on the Polygon network which grew significantly over the last year.


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The DeFi angle

As per the data provided by pledge, the number of liquid stakers on the network witnessed a massive surge over the past few months. At press time, the number of stakers on the network stood at 11,360 and the 99.6 million worth of MATIC was staked.

Despite this growth in liquid stakers, Polygon’s TVL declined in December as it fell from $1.06 billion to $998.07 million.

Source: pledge

Another contributor to the growth of Polygon’s ecosystem was the emerging NFT market on Polygon’s network.

Based on data provided by The Block, it was observed that Polygon’s market share by NFT trading volume rose to 9.6%, up from 0.5% just two weeks ago. The ascent of Trump NFTs and the tremendous flood of new participants that injected liquidity into the Polygon NFT market primarily fueled this resurgence.

 

 

Source: THE BLOCK

What about the public sentiment?

Despite the surge in interest in Polygon’s NFTs, there was a decline observed in Polygon’s activity on the social front.

As per LunarCrush, the number of social mentions and engagements for Polygon declined materially over the past week. Polygon’s social mentions fell by 19.2% and its engagements declined by 25.9% during the same period.

The sentiment for Polygon was also negative during this time frame. The declining weighted sentiment indicated this. A decline in weighted sentiment suggested that the crypto community had more negative than positive things to say about Polygon.

Source: Santiment

This decline in sentiment could be one of the reasons why the number of transactions on Polygon continued to decline.


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Data from Dune Analytics showed that the number of transactions and users on the network decreased significantly. The number of transactions on the network fell from 81.01 million to $7.05 million. The number of users on the network fell from 6.36 million to 4.85 million.

Source: Dune Analytics

At the time of writing, Polygon was trading at $0.800 and its price appreciated by 2.41% in the last 24 hours.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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