- Polygon consistently surpassed 1 million daily active users last month
- Interest in NFTs grew as MATIC’s price rose
As the focus of the crypto ecosystem shifts across sectors, from memecoins to Layer 2 networks, Polygon has maintained steady growth within its ecosystem.
Polygon shows consistency
In fact, recent data indicated that Polygon’s Proof of Stake (PoS) network consistently surpassed 1 million daily active addresses for a sustained 30-day period.
Source:
One of the reasons behind the growing activity on the Polygon network was the high interest in the NFT sector. AMBCrypto’s analysis of Artemis data revealed that NFT trading volume for Polygon has increased significantly in recent days.
Additionally, NFT collections such as CyberKongz and cryptokhat showed significant interest during this period.
Read Polygon [MATIC] Price forecast 2024-25
Source: Artemis
While the NFT sector saw growth, the same could not be said about Polygon in terms of the DeFi sector. Over the past week, the TVL (Total Value Locked) associated with the network has fallen from $1.1 billion to $890 million. Additionally, DEX (Decentralized Exchanges) volumes on the Polygon network also declined.
What this means is that most users prefer to use other platforms for DeFi-related activities. If this trend continues, it could be detrimental to the network in the long run.
Source: Artemis
How did MATIC do it?
At the time of writing, MATIC was trading at $0.6828, with the altcoin up 1.03% over the past 24 hours. Even beyond that, MATIC’s price has fallen significantly over the past month.
Despite the price drop, the total number of addresses with MATIC continued to grow. This indicated that while there appeared to be an accumulation of MATIC, it was still not significant enough to make any change in the price.
Read Polygon [MATIC] Price forecast 2024-25
Source: Santiment
What could turn the tide for MATIC would be if whales start showing interest in MATIC and start buying a large number of tokens.
Fortunately, AMBCrypto’s examination of Santiment’s data revealed that addresses with somewhere between 1,000 and 1,00,000 tokens have started showing interest in MATIC again. If this level of accumulation continues, there could be a significant increase in the price of MATIC and it could reach the previously claimed level around $1.27.
Source: Santiment