- Polygon’s ecosystem outperformed other Layer 2 solutions.
- However, it was seen that the participants lost interest in MATIC.
Despite the competitive landscape of the Layer 2 industry, polygon managed to perform well. According to the data provided by Artemis, the Polygon ecosystem is flourishing. Interestingly, it outperformed L2 solutions like Optimism and Arbitrum in several areas.
ETH L2 Comparison ⚔️
#1 in Users: $matic 🟣
#1 in Transaction: $matic 🟣
#1 in TVL: $arb 🔵
#1 in Vol Dex: $arb 🔵
#1 in Rates: $arb 🔵
#1 in Income: $matic 🟣
Contract #1 Implemented: $arb 🔵@0xPolygon @arbitrum master the fundamentals pic.twitter.com/ZSyfOdKvnz— Artemis 🏹 (@Artemis__xyz) February 18, 2023
One of the key areas in which Polygon showed dominance was revenue generation. According to Artemis data, Polygon’s revenue was seen to have increased significantly in recent months. In this sense, MATIC outperformed other L2 solutions such as Optimism and Arbitrum.
Read the Matic price prediction 2023-2024
One of the reasons behind Polygon’s commendable performance was the increase in the number of users on the network.
Well, you saw an increase in the number of transactions on the Polygon network.
The growing interest in the Polygon network can be attributed to its NFT and DEX activity.
In fact, the network saw a huge increase in NFT volumes, according to data provided by Dune Analytics. Thanks to the recent surge of interest in the general NFT space and multiplicity of polygons cooperation and partnership throughout the last year.
But it wasn’t just the NFT space that was driving users onto the network, DEXs were also contributing. According to data from Dune Analytics, Polygon’s DEX volume increased from $69 million to $185 million in a two-week period.
Polygon’s dominance in the NFT and DEX space suggested that users had a lot of faith in their ecosystem.
Well, luckily these factors positively affected the price of the Matic. Last week, the price of MATIC increased from $1.23 to $1.53.
proceed with caution
However, there were some metrics that suggested that this bull run could soon come to an end.
One of them was the declining growth of the Matic network. According to Sentiment data, the overall growth of the Matic Token network has slowed down significantly.
This implies that the number of new addresses being transferred to MATIC has decreased significantly. It goes without saying that the drop in interest in new addresses will have a negative impact on the price of MATIC in the near future.
In addition, an increase in the MVRV ratio of Matic was observed. A high MVRV ratio means addresses can sell their properties for a profit. In turn, this will increase the selling pressure on Matic holders.
how much is 1,10,100 Is Matic worth it today?
Another cause for concern for MATIC token holders could be a drop in their volume. In the last few days, the total volume decreased from 1.4 billion to 616 million.
Source: Feeling
Furthermore, it was seen that the participants lost interest in MATIC during this period. According to data provided by Staking Rewards, the number of MATIC addresses has decreased by 0.62% in the last 30 days.
The apathy of the stackers may indicate a possible bearish outlook ahead. However, if Polygon continues to show growth in its ecosystem, it could take some of the selling pressure off of MATIC for a while.
