- Polygon noticed a decline in DEX quantity and community development regardless of reaching a milestone in DEX quantity.
- Rising NFT market and ongoing zkEVM developments have been constructive for Polygon’s long-term potential regardless of the present setbacks.
Polygon [MATIC] just lately reached a brand new milestone by way of decentralized trade (DEX) quantity. It crossed $50 billion in DEX quantity over the past 12 months, in accordance with a tweet on 11 January.
$50B+ in DEX quantity on @0xPolygon over the past 12 months🤌 pic.twitter.com/ZSDnEvwcrj
— Narb (@NarbTrading) January 10, 2023
Learn Polygon’s [MATIC] Worth Prediction 2023-2024
Nonetheless, regardless of reaching this watershed quantity, DEX quantity on Polygon declined over the previous few months, in accordance with knowledge from Dune Analytics. This decline in quantity may very well be attributable to a wide range of components, corresponding to elevated competitors from different platforms or a common decline in buying and selling exercise within the crypto market.
This decline in quantity prompt that despite the fact that Polygon reached a brand new milestone, by way of DEX quantity, the expansion of Polygon on this space decelerated.
Supply: Dune Analytics
Not all hope is misplaced for Polygon
The declining DEX exercise, nonetheless, didn’t have an effect on Polygon’s NFT market.
Polygon’s rising NFT marketplaces confirmed positivity, with a spike in NFT quantity as reported by Dune Analytics knowledge. One probably cause for this spike can be the latest launch of the Donald Trump NFT assortment.
Moreover, Polygon’s latest collaboration with social media giants corresponding to Reddit and Instagram is also factored in. These collaborations have helped deliver extra consideration and publicity to the Polygon ecosystem.
Supply: Dune Analytics
Speaking about MATIC
Shifting on to the MATIC token – merely put, the community development and velocity for the token declined, together with day by day energetic addresses. The latter is proof of fewer energetic customers on the community.
Supply: Santiment
This aforementioned decline impacted MATIC holders’ profitability as nicely, which was showcased by the MVRV ratio, which declined over the previous month.
This prompt that the majority MATIC holders would lose cash in the event that they bought their holdings at press time. Furthermore, the constructive lengthy/quick distinction implied a majority of long-term holders have been experiencing losses at press time.
Are your MATIC holdings flashing inexperienced? Test the MATIC revenue calculator
Supply: Santiment
Regardless of these short-term setbacks, Polygon continued to push ahead with its ongoing developments in zk-EVM, which goals to make it simpler to construct and deploy zk-rollup dApps on the platform. The platform’s give attention to scalability and efficiency is anticipated to assist appeal to extra builders and customers in the long term.
At press time, the worth of the MATIC token was $0.859, but it surely grew by 1.41% within the final 24 hours, in accordance with CoinMarketCap.
