Polygon recorded unprecedented growth in July- Decoding ‘why’

Polygon [MATIC] registered tremendous gains throughout July across the crypto market. Between the start of the month and its end, MATIC made over 80% in profits

It recorded an uptick from $0.46 to $0.97 within thirty days, as per CoinMarketCap.

Interestingly, the Polygon ecosystem did not just hold all the good parts for its token.

According to its weekly update, Polygon contributed to the giant strides recorded by the NFT and Play-to-Earn (P2E) projects deployed on its chain.

Partners with yields

Besides the recent MATIC rally, Polygon increased its daily transaction with an uptick of 2%, moving it up to 2.89 million.

The web3 infrastructure ecosystem took it further as it managed a 13% cheaper transaction fee at an average of $0.02.

Additionally, Defence Heroes, the top P2E built on the Polygon protocol, grew its userbase by 460% over the past week. 

In another interesting turn, NFTs on the Polygon chain recorded huge successes despite the downturn of the NFT market.

The Polygon analytics team announced that over 21,000 new NFT wallets were created in the same period.

Also, total NFT transaction volume hit 60 $million with 4.75 million mint events using the Polygon network.

The mint events represented a 13% uptick from the previous week’s levels.

Similarly, Decentralized Applications (DApps) on Polygon increased in unique user count and total transactions.

Leading DApp, Sunflower Land hit and crossed the 50,000 user milestone.

Its weekly transactions also increased to 310,972. Others, including QuickSwap, and PlanetIX, also did good numbers, with The Sandbox being the least performing one. 

As Polygon continues to achieve more breakthroughs, so is its native token doing superbly well. 

On-chain analysis

Expectedly, the development activity on Polygon has seen a significant improvement, moving from 3.35 to 3.52 over the last 24 hours.

This metric has followed MATIC price increase, which registered a 5.98% gain as it traded at $0.90 at press time.

Source: Santiment

With this promising start in the first week of August, it may seem that MATIC might drive another excellent performance like it did in July.

However, it may be too early to conclude that MATIC price performance may break the previous month’s levels.

Santiment data also revealed that there has also been an increase in exchange supply.

Even so, the rise between 1 August and 3 August has not been so enormous to confirm bullish sentiment.

Source: Santiment