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Polygon generates new interest from users, could this development be the reason

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  • Polygon reached a new milestone in terms of unique addresses on its network
  • The growth could be attributed to Polygon’s improving ecosystem

The number of unique addresses on Polygon [MATIC] reached new heights according to an 18 December update. One reason for the same could be the development of Polygon’s ecosystem.

   Read Polygon’s [MATIC] Price Prediction 2023-24

Attracting a fresh user base

According to data posted by Sandeep Nailwal, co-founder of Polygon, the number of unique addresses on the Polygon network crossed 200 million. The NFT market and dApps on Polygon may have played a huge role in accumulating these new addresses.

From data gathered by Nansen, it was witnessed that the number of users who had either traded or minted NFTs on the Polygon network per week had increased tremendously, and sat at 332,00 users at press time.

Source: Nansen

Another medium through which Polygon attracted the attention of users was through its dApps. Over the last 30 days, various dApps on Polygon, such as QuickSwap and Planet IX, saw growth.

Based on the information provided by DappRadar, the unique active users on Planet IX witnessed an immense uptick over the past 30 days. The number of transactions being made on the dApp also increased during the same time period, as evidenced by the chart below. However, despite this, the volume on the dApp continued to decline.

QuickSwap’s activity also observed a similar trajectory. The unique active users on QuickSwap grew by 37.76% in the last week. During the same time frame, the number of transactions on QuickSwap also increased by 9.02%.

Source: DappRadar

Despite Polygon‘s growing ecosystem, its price action continued to move in a negative direction.

Polygon holders lose money

Based on data from Santiment, MATIC’s price declined materially over the past week. There was also a major spike in terms of price volatility.

The decline in prices preceded the spike in price volatility. The growing price volatility indicated that the future movement of MATIC could be prone to extreme fluctuation.

Along with the spike in volatility, the falling prices also impacted MATIC’s Market Value to Realized Value (MVRV) ratio. Over the last month, the MVRV ratio for MATIC holders dropped immensely. This implied that if most Polygon holders sold their MATIC, they would do so at a loss.

Source: Santiment

It remains to be seen whether Polygon’s growing ecosystem could affect MATIC’s prices positively. However, even though Polygon’s ecosystem and NFT space had shown growth, there were a few updates that could cause FUD against Polygon’s NFT marketplace.

Recently, the ex-President of the United States, Donald Trump, launched his own NFT collection on Polygon. After the collection was released, there was data published that suggested there was allegedly foul play at work.

 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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