- The Polygon network consistently surpassed 1 million daily active addresses for 65 days.
- TVL and DEX volumes decreased.
Polygon [MATIC] continued to attract a large number of users in recent months. The ecosystem could not only attract users but also retain them.
Polygon activity is increasing
According to recent data, the Polygon network maintained a record of over 1 million daily active addresses for 65 days in a row.
Source:
Despite this, Polygon was struggling in terms of DeFi. Overall, DEX (Decentralized Volumes) fell from $320 million to $50 million in recent weeks.
Additionally, the TVL (Total Value Locked) for Polygon decreased significantly from $1.2 billion to $980 million.
Source: Artemis
These factors significantly impacted the revenue generated by the Polygon network. AMBCrypto’s analysis of Token Terminal data showed that revenue increased by 42% over the past month.
Similarly, development activity fell 14% in the last 30 days.
Source: Token terminal
If the number of code commits on the network continues to decline, it could have a significant negative impact on the Polygon network.
The token also did not have a positive time in terms of price movements. Since April 9, MATIC’s price has fallen, with multiple lower lows and lower highs.
This pattern suggested that a bearish trend had emerged. Despite MATIC’s multiple attempts to break the trend, the price remained consolidated between the $0.7802 and $0.6346 levels.
The price should retest and weaken the resistance level at $0.7802 before seeing a reversal.
The RSI (Relative Strength Index) had fallen significantly during this period, implying that the bullish momentum around MATIC had weakened.
On the plus side, the CMF (Chaikin Money Flow) had grown, indicating that the flow of money into MATIC had soared.
At the time of writing, MATIC was trading up $0.7191.
Source: trading view
Realistic or not, here is the market cap of MATIC in ETH terms
Holders see green, token sees red
Network growth for MATIC had also fallen in recent days, indicating a lack of interest from new addresses.
The MVRV ratio also witnessed an increase, which suggested that most holders were profitable and could have an incentive to sell their tokens later.
Source: Santiment