Connect with us
Active Currencies 14377
Market Cap $2,749,231,314,972.20
Bitcoin Share 50.37%
24h Market Cap Change $1.65

Polygon & MATIC – Are they REALLY doing well and should you worry?

2min Read

From the start of the year, there has been a significant influx of new users into Polygon. However, that’s not the whole story…

Polygon users

Share this article

  • Polygon has seen a massive surge in new users since the beginning of the year
  • Revenue generated by the network grew, however, while DEX volumes fell

Over the past month, MATIC has fallen significantly on the price front, contributing to sentiment around the token falling dramatically. However, despite the same, the health of the larger Polygon ecosystem remains positive.

An uptick in activity

Since the start of 2024, Polygon has attracted a substantial number of new users, totaling 12.3 million as of 27 March. This influx represents a significant portion of new users across various observed EVM chains this year, accounting for roughly 70% alongside Ethereum. Despite Polygon’s longer establishment compared to many EVM chains, its ability to draw in such a large user base is impressive.

Furthermore, Polygon’s new user volume recorded a remarkable growth rate of 359.7% between January and March 2024. In doing so, it positioned itself within the median range across all observed chains.

Source: Flipside

With a larger user base, transaction activity on the Polygon network is bound to rise. This can lead to higher transaction fees, which in turn can be used to further develop the platform and incentivize users, like rewarding validators for securing the network. Over the past month alone, the revenue generated by Polygon surged by 51.9%.

However, in terms of development activity, a slowdown can be seen.

For instance – AMBCrypto’s analysis of Token Terminal’s data revealed that the number of code commits being made by Polygon developers fell. If this trend of declining code commits continues, it would mean a decline in the pace of updates and upgrades on the Polygon network.

Source: Token Terminal

Furthermore, in terms of the DeFi sector, Polygon saw a decline in activity. This was showcased by the falling DEX (Decentralized Exchange) volumes on the network.

Read Polygon’s [MATIC] Price Prediction 2024-25

Despite the declining DEX volumes, however, TVL (Total Value Locked) on the network continued to rise. If DEX volumes decline in the future, the TVL will be affected adversely.

Source: Artemis

For its part, MATIC hasn’t been doing too well either. At the time of writing, MATIC was trading at $0.8813, down 11.33% over the past week. However, the velocity at which MATIC was trading had surged significantly.

The uptick in MATIC transactions could help the price see green in the future.

Source: Santiment


Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates. He is a fan of gonzo journalism, transgressive fiction, heavy metal, and Manchester United.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.