Polygon witnesses GameFi growth, but will lurking bears impede MATIC’s rise
- Polygon’s active addresses increased slightly, but fees and revenue declined in the last few weeks.
- MATIC’s chart was green, but metrics supported the bears.
Polygon [MATIC] registered a slight increase in daily active addresses over the last 30 days. The growth can be attributed to the much-anticipated zkEVM mainnet launch, which helped attract more users to the network.
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However, despite increased users, the network’s fees and revenue declined over the last few weeks. The network’s troubles did not end here, as its zkEVM status also showed concerning signs.
State of Polygon zkEVM
After a comfortable launch, zkEVM’s growth seemed to have stopped at press time, as evident from Dune’s data. As per the charts, unique depositors on zkEVM have registered a decline. A similar downtrend was also seen in the daily inflow by tokens.
These can bring more trouble
A look at Santiment’s chart pointed out quite a few other concerning metrics, which could bring more trouble for Polygon in the days to come. For example, Polygon’s development activity declined sharply last week, indicating fewer efforts by developers to improve the network.
MATIC’s weighted sentiments also declined, reflecting less confidence from investors.
Growth in GameFi noted
Despite the negatives, it was interesting to see growth in Polygon’s GameFi network. The League of Kingdom chose Polygon for their much-awaited Drago update. This could help propel user growth on Polygon, which could, in turn, cause a spike in revenue in the coming months.
Polygon is elated to be chosen as The League of Kingdom’s blockchain of choice for their much awaited Drago update 🐉
Dragos are getting ready to spread their wings and show their potential #onPolygon.
— Gaming #onPolygon (@PolygonGaming) April 3, 2023
The League of Kingdoms is the world’s first blockchain-based massive multiplayer (MMO) strategy game. The game allows players to compete on the battlefield and own a piece of the future of the game company.
In addition to that, Polygon staking also registered growth, as total stakers increased by over 17% in the last 24 hours.
MATIC’s reaction to these developments
MATIC’s reaction to all the aforementioned updates remained positive. According to CoinMarketCap, MATIC’s price increased by over 4.5% in the last seven days. At press time, it was trading at $1.11, with a market capitalization of more than $10 billion.
Realistic or not, here’s MATIC market cap in BTC’s terms
However, its on-chain performance did not support this price uptick. As per Santiment, despite the uptick, MATIC’s MVRV ratio declined slightly on 4 April. Though the Binance funding rate was green, it was not as high as many would expect, reflecting less demand in the derivatives market.
MATIC’s supply also raised more concerns as its supply on exchanges increased. This happened while MATIC’s supply outside of exchanges went down, which was a typical bearish signal.