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1.1 Million daily users on Polygon: MATIC’s next move?

2min Read

A higher stablecoin market cap meant higher liquidity and efficiency.

Polygon stablecoin market cap recovers from bear market

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  • Polygon was the sixth-largest chain in terms of total stablecoin supply.
  • Whales have shown lukewarm interest towards MATIC.

The Polygon [MATIC] chain has been experiencing higher user participation and liquidity infusion in 2024, causing the broader market to sit up and take notice.

Polygon sees rise in stablecoin supply

According to AMBCrypto’s analysis of DeFiLlama’s data, Polygon’s stablecoin market cap hit nearly $1.5 billion as of this writing, marking an impressive 18% growth year-to-date (YTD). As of this writing, it was the sixth-largest chain in terms of total stablecoin supply.

Polygon stablecoin market cap

Source: DeFiLlama

Stablecoins can be construed as the on-chain equivalent of cash in traditional financial markets. A higher stablecoin marketcap indicates a larger pool of liquidity, making trading on the chain easier, and thereby leading to a more efficient market.

That being said, the current levels still remained a far way off from the peak registered in July 2021. In reality, Polygon’s next aim should be the pre-bear market level of $2.6 billion achieved in September 2022.

The best-performing ETH scaling solution

The rise in stablecoin market cap comes alongside an impressive surge in user engagement on the network.

According to AMBCrypto’s examination of Artemis’ data, the Polygon proof-of-stake (PoS) chain massively outperformed other scaling networks in daily active addresses and transactions in 2024.

Polygon Network activity

Source: Artemis

Take for instance, the daily active addresses count on Polygon PoS on the 26th of March was 1.1 million, more than triple the count of the second-best ranked chain on the list. A similar trend came to light when it came to transaction count.

Will whales show interest?

The chain’s native token MATIC rose 1.73% in the last 24 hours, taking its last seven-day gains to over 11%, as per CoinMarketCap. MATIC’s performance was in line with the broader altcoin market report card. On a YTD basis, the crypto was up 12%


Is your portfolio green? Check out the MATIC Profit Calculator


Interestingly, the rise was not built on whales’ accumulation. Using Santiment, AMBCrypto noted a sharp drop in whale transactions in 2o24.

Moreover, the holdings of these influential investors remained flat during this time, implying lower engagement from whales.

Polygon whales

Source: Santiment

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Aniket Verma works as a journalist at AMBCrypto. Contrary to most who are primarily interested in merely tracking price movements of cryptos, his focus is on examining the niche intersection between cryptocurrencies and traditional finance. A so-so Bitcoin maximalist, Aniket has a strong disdain for memecoins and the unfounded frenzy they seem to generate every market season. Coming from a strong engineering background, Aniket previously worked as a Content Manager for TV9 Network. Before his stint over there, he was an Associate Multimedia News Producer at Reuters.
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