Polygon’s latest ‘win’ – What it means after MATIC’s 21% drop

• Polygon comprehensively surpassed other ETH scaling networks in daily active user count.
• MATIC was in the red, plunging more than 12% over the week.

The bull market has brought users back to Polygon [MATIC], and how!

Polygon sees high user interest

The proof-of-stake (PoS) network recorded more than a million daily active addresses on average last month, with just two days experiencing less than 1 million users, according to AMBCrypto’s analysis of Artemis’ data.

In fact, Polygon comprehensively surpassed other Ethereum [ETH] scaling networks in user engagement.

To get a sense of the dominance, the second-best chain on the list, zkSync Era, recorded roughly a third of Polygon’s daily active user count last month.

Source: Artemis

Since the beginning of 2024, the number of users interacting with Polygon has more than doubled.

This was a sharp turnaround from the drought of last year’s bear market, when daily active addresses fluctuated between 300k and 400k.

Liquidity spike on Polygon

The onboarding of users also caused a significant spike in Polygon’s liquidity. As per AMBCrypto’s analysis of DeFiLlama‘s data, the total value locked (TVL) broke past $1 billion last month, a first since June 2023.

The current levels were closer to 2023 peaks, meaning that losses made last year have been effectively erased.

The next target would be the $2 billion-mark hit in August 2022, and subsequently the all-time high (ATH) of $9.8 billion in June 2021.

Source: DeFiLlama

MATIC still in the red

But despite Polygon’s exploits on the network front, the native token MATIC continued to trend lower.

The 17th largest cryptocurrency plunged 12% over the week, and more than 21% in the last 30 days, according to CoinMarketCap

Is your portfolio green? Check out the MATIC Profit Calculator

Whales interaction dropped significantly since mid-March, as evidenced by drop in large transactions worth more than $100,000.

Interestingly, large whales, i.e, those with holdings of more than 100,000, sold their MATICs in this period. These were likely scooped by smaller whales with wallet size between 1,000–100,000.

Source: Santiment