- Polygon has consistently surpassed 1 million daily active users over the past month.
- While the price of MATIC has been rising, interest in NFTs has increased.
While the focus of the cryptocurrency ecosystem has shifted to various sectors, from memecoins to layer 2 networks, Polygon has maintained steady growth within the ecosystem.
Polygons show consistency.
In fact, recent data shows that Polygon’s Proof of Stake (PoS) network has consistently surpassed 1 million daily active addresses for 30 days.
Source: X
One of the reasons for the increased activity on the Polygon network has been the high interest in the NFT sector. AMBCrypto’s analysis of Artemis data shows that Polygon’s NFT trading volume has surged significantly over the past few days.
Additionally, NFT collections such as CyberKongz and cryptokhat recorded significant interest during this period.
Read Polygon (MATIC) Price Prediction for 2024-25
Source: Artemis
The same cannot be said for Polygon in terms of the DeFi sector, despite the growth of the NFT sector. Over the past week, Total Value Locked (TVL) on the network decreased from $1.1 billion to $890 million. Additionally, the volume of Decentralized Exchanges (DEXs) on the Polygon network has also decreased.
What this means is that most users prefer to use other platforms for their DeFi-related activities. If this trend continues, it could be detrimental to the network in the long term.
Source: Artemis
What happened to MATIC?
At press time, MATIC was trading at $0.6828, up 1.03% in the altcoin price over the past 24 hours. Besides that, the price of MATIC has fallen significantly over the past month.
However, despite the price drop, the overall number of addresses holding MATIC continued to increase. This indicates that there appears to be an accumulation of MATIC, but still not large enough to cause a significant change in price terms.
Read Polygon (MATIC) Price Prediction for 2024-25
Source: Santiment
What could change the course of MATIC is if whales start showing interest in MATIC and start purchasing large quantities of tokens.
Fortunately, AMBCrypto’s examination of Santiment’s data shows that addresses holding between 1,000 and 1,00,000 tokens are starting to show interest in MATIC again. If this level of accumulation continues, the price of MATIC could surge significantly and reach previously claimed levels of around $1.27.
Source: Santiment