- Last week we saw a significant increase in activity on the Polygon network.
- The amount of NFTs and DEXs has also skyrocketed, indicating the growth of the ecosystem.
polygon [MATIC] Due to the rise in popularity of L2 and meme coins, they have recently fallen out of the social media conversation in the cryptocurrency space.
But even as the spotlight moved away from Polygon, activity on the network continued to spike.
Polygon users are increasing
According to recent data, Polygon’s Proof of Stake (PoS) network has exceeded 1 million daily active addresses for 25 consecutive days.
Daily active addresses represent the number of unique user wallets that interact with the network on a given day. Consistently above 1 million suggests a significant and continuous increase in network usage.
The continued increase in active addresses indicates an expanding user base and potential growth for the network.
This surge in activity was driven by the popularity of the Polygon ecosystem. Both NFTs and the DeFi ecosystem have seen a significant increase in interest over the past few weeks.
Source:X
According to an analysis of Dune Analytics data by AMBCrypto, NFT trading volume has increased significantly in recent days.
Each NFT transfer incurs a fee, so as the volume increases, so does the revenue for the validators securing the network. This allows you to create a sustainable source of income that fuels the growth of your network.
Source: Dune Analytics
In the DeFi sector, we have seen that Polygon has managed to grow both in terms of DEX (decentralized exchange) and revenue.
However, despite these factors, TVL (Total Value Locked) by the networks has significantly decreased over this period.
This suggests that new users and trading activity are not leading to users locking more funds into Polygon’s DeFi protocol. The decline in TVL may be explained by several factors.
Users may be moving their funds to DeFi platforms that offer better yields and features. Alternatively, you may be withdrawing your locked assets for profit taking or other uses.
Source: Artemis
read polygons [MATIC] Price prediction for 2024-2025
At the time of writing, MATIC is trading at $0.7453, and its price has increased by 8.52% in the past 24 hours. Additionally, trading volume decreased by 47.34% during this period.
During this period, its network growth also declined, suggesting that new addresses were losing interest in MATIC.
Source: Santimento
