- Activity on the Polygon network has increased significantly over the past week.
- NFT and DEX volumes also rose, indicating a growing ecosystem.
Polygon [MATIC] recently fell out of social media conversations in the crypto space as L2s and meme coins gained popularity.
But despite the spotlight being removed from Polygon, activity on the network continued to rise.
Polygon users on the rise
According to recent data, Polygon’s Proof of Stake (PoS) network has consistently surpassed 1 million daily active addresses for a rolling 25-day period.
Daily active addresses represent the number of unique user wallets communicating with the network on a given day. Consistently exceeding 1 million indicates a significant and sustained increase in network usage.
A continued increase in active addresses is indicative of a growing user base and potential network growth.
This increase in activity was driven by the popularity of the Polygon ecosystem. Both the NFT and DeFi ecosystems have witnessed a surge in interest in recent weeks.
Source:
According to AMBCrypto’s analysis of Dune Analytics data, the volume of NFTs trading had grown significantly in recent days.
Because fees are charged for each NFT transfer, higher volume translates into more revenue for validators securing the network. This can create a sustainable revenue stream that fuels network growth.
Source: Dune Analytics
In the DeFi sector, it was seen that Polygon managed to see growth in terms of both DEX (Decentralized Exchanges) and in terms of revenue generated.
However, despite these factors, the network’s TVL (Total Value Locked) has fallen significantly over this period.
This suggests that there are new users and that the trading activity did not translate into users committing more funds to Polygon’s DeFi protocols. Several factors can explain the decline in TVL.
Users can move their funds to DeFi platforms that offer better returns or features, or they can withdraw locked assets to make profits or use them elsewhere.
Source: Artemis
Read Polygon [MATIC] Price forecast 2024-25
At the time of writing, MATIC was trading at $0.7453 and its price was up 8.52% over the past 24 hours. Moreover, the volume traded during this period was down 47.34%.
Network growth had also slowed during this period, indicating that new addresses were losing interest in MATIC.
Source: Santiment