- Polygon saw an increase in stablecoin market capitalization.
- MATIC fell further below the RSI neutral line.
Polygon (MATIC) has seen a notable increase in its stablecoin market capitalization. How has this affected other indicators and the overall trend in MATIC?
Polygon sees the rise of stablecoins.
Examination of DefiLlama’s Polygon stablecoin market capitalization indicator reveals an interesting trend.
This chart shows a notable increase in the network’s stablecoin market capitalization, hitting the highest trading volume observed in the past six months.
At the time of this writing, the stablecoin market capitalization was approximately $1.4 billion.
Source: DefiLlama
Further analysis of the chart showed that the market capitalization had been steadily rising since around December 14th. By December 31, it had grown from about $1.1 billion to more than $1.2 billion.
However, the rise became more pronounced in early February and reached reporting levels.
An increase in stablecoin market capitalization serves as an indication of increased trading activity on the network.
TVL and volume have not yet felt any impact
AMBCrypto’s assessment of Polygon’s Total Value Locked (TVL) shows a lack of significant trends over the past few weeks. At the time of this writing, TVL was approximately $817 million.
After falling below the $1 billion range in May 2023, it has struggled to recover that level.
Source: DefiLlama
According to AMBCrypto’s trading volume analysis, it exceeded $200 million in January and exceeded $300 million before declining.
The chart shows the decline beginning in late January, with further declines occurring in February. At the time of this writing, the amount was approximately $66.5 million.
This suggests that despite the upward movement in stablecoin market capitalization, other important indicators are yet to reflect a notable impact.
MATIC continues to decline.
While the Polygon stablecoin market capitalization has shown a continuous upward trend, the opposite phenomenon has been observed for its native token, MATIC.
How much is 1,10,100 MATIC worth today?
Analysis of the daily chart shows that it has fallen by 1% in each of the last three days. At the time of this writing, MATIC was trading around $0.77.
The decline in prices pushed the Relative Strength Index (RSI) further down from its neutral line.
Source: TradingView