Polygon’s ‘1 million’ milestone leaves MATIC whales with THIS decision

• Polygon surpassed 1 million daily active users consistently over the past month
• Interest in NFTs grew while MATIC’s price recorded an uptick

While the crypto-ecosystem’s focus shifts across various sectors, from memecoins to Layer 2 networks, Polygon has maintained steady growth within its ecosystem.

Polygon shows consistency

In fact, recent data indicated that Polygon’s Proof of Stake (PoS) network consistently surpassed 1 million daily active addresses for a sustained period of 30 days.

Source: X

One of the reasons behind the growing activity on the Polygon network was the high interest shown in its NFT sector. AMBCrypto’s analysis of Artemis’ data revealed that NFT trading volume for Polygon surged materially over the last few days.

Additionally, NFT collections such as CyberKongz and cryptokhat recorded a significant level of interest over this period.

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

Source: Artemis

Even though the NFT sector saw growth, the same couldn’t be said about Polygon in terms of the DeFi sector. Over the past week, the TVL (Total Value Locked) attached to the network fell from $1.1 billion to $890 million. Additionally, DEX (Decentralized Exchanges) volumes on the Polygon network declined as well.

What this means is that most users prefer to use other platforms for DeFi-related activities. If this trend continues, it could prove to be detrimental for the network in the long run.

Source: Artemis

How did MATIC do?

At press time, MATIC was trading at $0.6828, with the altcoin hiking by 1.03% in the last 24 hours. Even outside of that, over the past month, the price of MATIC has declined significantly.

Despite the decline in price, however, the total number of addresses holding MATIC continued to grow. This indicated that even though there seemed to be an accumulation of MATIC, it still wasn’t significant enough to make any changes in terms of price.

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

Source: Santiment

What could change the tide for MATIC would be if whales started to show interest in MATIC and started to buy a large number of tokens.

Fortunately, AMBCrypto’s examination of Santiment’s data revealed that addresses holding anywhere between 1,000 to 1,00,000 tokens have started to show interest in MATIC again. If this level of accumulation continues, there could be a significant surge in MATIC’s price and it could hit its previously-claimed levels around $1.27.

Source: Santiment