- Polygon’s ecosystem outperformed different Layer 2 options.
- However, stakers have been seen shedding curiosity in MATIC.
Despite the aggressive panorama of the Layer 2 sector, Polygon managed to carry out effectively. According to knowledge supplied by Artemis, Polygon’s ecosystem has been thriving. Interestingly, it outperformed L2 options similar to Optimism and Arbitrum in numerous areas.
ETH L2s comparisons ⚔️
#1 in customers: $MATIC 🟣
#1 in transactions: $MATIC 🟣
#1 in TVL: $ARB 🔵
#1 in DEX quantity: $ARB 🔵
#1 in charges: $ARB 🔵
#1 in income: $MATIC 🟣
#1 contract deployed: $ARB 🔵@0xPolygon @arbitrum dominating on fundamentals pic.twitter.com/ZSyfOdKvnz— Artemis 🏹 (@Artemis__xyz) February 18, 2023
One of the key sectors the place Polygon confirmed dominance was income technology. Based on Artemis’ knowledge, it was noticed that Polygon’s income grew materially over the previous few months. In this matter, MATIC outcompeted different L2 options similar to Optimism and Arbitrum.
Read Matic’s Price Prediction 2023-2024
One of the explanations behind Polygon’s commendable efficiency was the rise within the variety of customers on the community.
Well, this noticed the variety of transactions on the Polygon community going up.
The rising curiosity in Polygon’s community may very well be attributed to its NFT and DEX exercise.
According to knowledge supplied by Dune Analytics, in truth, the NFT quantity on Polygon’s community noticed an enormous spike. Thanks to the current surge in curiosity within the general NFT house and Polygon’s a number of collaborations and partnerships over the previous 12 months.
But it wasn’t simply the NFT house that was driving customers to the Polygon community, DEXes have been additionally contributing. Based on Dune Analytics knowledge, the amount of Polygon’s DEX elevated from $69 million to $185 million within the span of two weeks.
Polygon’s dominance within the NFT and DEX house recommended that customers had loads of religion in its ecosystem.
Source: Dune Analytics
Well, fortunately, these elements impacted the worth of MATIC positively. Over the final week, MATIC’s worth surged from $1.23 to $1.53.
Proceed with warning
However, there have been few metrics that recommended that this bull run may come to an finish quickly.
One of them was MATIC’s declining community progress. According to Santiment’s knowledge, the general community progress of the MATIC token has fallen significantly.
This implied that the variety of new addresses transferring MATIC had decreased considerably. It goes with out saying {that a} decline in curiosity from new addresses would influence the worth of MATIC negatively, within the close to future.
Moreover, MATIC’s MVRV ratio noticed a rise. The excessive MVRV ratio meant that addresses may promote their holdings for a revenue. This would, in flip, improve the promoting stress on MATIC holders.
How a lot is 1,10,100 MATIC price immediately?
Another explanation for concern for MATIC token holders will be the decline in its quantity. Over the previous few days, the general quantity declined from 1.4 billion to 616 million.
Source: Santiment
Furthermore, stakers have been seen shedding curiosity in MATIC throughout this era. According to knowledge supplied by Staking Rewards, the variety of addresses staking MATIC decreased by 0.62% during the last 30 days.
The disinterest from stakers may sign a potential bearish outlook for Polygon sooner or later. However, if Polygon continues to point out progress in its ecosystem, it may maintain the MATIC promoting stress at bay for a while.
