- Polygon saw a rise in the market capitalization of stablecoins.
- MATIC fell further from the neutral line on its RSI.
Polygon [MATIC] saw a notable increase in the market capitalization of stablecoins. How has this affected other metrics and the overall trend of MATIC?
Polygon sees an increase in stablecoins
An investigation into the market capitalization of Polygon stablecoin on DefiLlama showed intriguing trends.
The chart showed a notable increase in the market capitalization of stablecoins on the network, marking the highest volume seen in the past six months.
At the time of writing, the market capitalization of stablecoins was approximately $1.4 billion.
Source: DefiLlama
Further analysis of the chart showed that the market capitalization started to rise steadily around December 14th. Through December 31, it rose from about $1.1 billion to more than $1.2 billion.
However, at the beginning of February the increase became even more pronounced, reaching the level of the press.
An increase in the market capitalization of stablecoins serves as an indication of increased transactional activity on the network.
TVL and volume have yet to feel the impact
AMBCrypto’s evaluation of Polygon’s Total Value Locked (TVL) showed a lack of significant trends in recent weeks. At the time of writing, TVL was approximately $817 million.
Since the country fell below the $1 billion mark in May 2023, it has struggled to regain that level.
Source: DefiLlama
AMBCrypto’s analysis of trading volume showed a decline after surpassing $200 million and reaching over $300 million in January.
The chart showed a decline starting in late January, with a further decline in February. At the time of writing this article, volume was approximately $66.5 million.
This suggested that despite the upward movement in stablecoin market capitalization, other crucial metrics are yet to reflect a notable impact.
MATIC sees consecutive declines
While Polygon stablecoin’s market capitalization has experienced consistent upward trends, the opposite has been observed for its native token, MATIC.
How much are 1,10,100 MATICs worth today?
An analysis of the daily timeframe chart showed a decline of 1% each over the last three days. At the time of writing, MATIC was trading around $0.77.
The price drop has caused the price to fall further from the neutral line on the Relative Strength Index (RSI).
Source: TradingView