- Polygon was approaching 10 million monthly active users on its network.
- The price of MATIC has fallen with the growth of the network and the increase in the number of transactions.
Despite the growing popularity of other cryptocurrencies and blockchain networks, Polygon [MATIC] The number of users on the platform continued to grow.
Monthly activity is declining
According to data from token terminals, at the time of writing, the Polygon network has nearly 10 million users.
Source: X
The surge in activity on the network was driven by the popularity of the Polygon ecosystem. Despite the increase in activity on the network, the state of DeFi on the network was not as good.
AMBCrypto’s analysis of Artemis data revealed that DEX (decentralized exchange trading volume) on the network has dropped significantly in recent days.
In addition to that, the total value locked (TVL) on the Polygon network also dropped significantly during this period. According to the data, the daily TVL collected from Polygon fell from $1 billion to $942 million in the past few days.
Screenshot: Artemis
These factors have resulted in a significant decline in fees generated by the network, and therefore in revenue generated by the network.
If these issues continue, it will be difficult for Polygon to secure funding to scale and improve its network.
Source: Artemis
The number of code commits occurring on the Polygon network has dropped significantly over the past month. Additionally, the number of core developers on the network has also dropped significantly.
If this trend continues, we may see fewer updates and upgrades occurring on the network, as new updates and upgrades will help improve sentiment towards the network.
It also helps you attract new users to your network and retain existing ones.
Source: TokenTerminal
What is the situation with MATIC?
The price of the MATIC was also not very good. At the time of writing, the price of the MATIC was $0.7062 This reflects a decrease of 1.82% over the past month.
During this period, the token’s network growth also plummeted, indicating less interest from new addresses.
Additionally, trading volume around Polygon has also dropped significantly, suggesting that MATIC trading frequency has declined as well.
Source: Santiment
