- 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 had been constructive for Polygon’s long-term potential regardless of the present setbacks.
Polygon [MATIC] lately reached a brand new milestone when it comes to decentralized change (DEX) quantity. It crossed $50 billion in DEX quantity over the past 12 months, based on 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] Value Prediction 2023-2024
Nonetheless, regardless of reaching this watershed quantity, DEX quantity on Polygon declined over the previous couple of months, based on information from Dune Analytics. This decline in quantity might be as a result of quite a lot of components, similar to elevated competitors from different platforms or a common decline in buying and selling exercise within the crypto market.
This decline in quantity instructed that although Polygon reached a brand new milestone, when it comes to DEX quantity, the expansion of Polygon on this space decelerated.
Supply: Dune Analytics
Not all hope is misplaced for Polygon
The declining DEX exercise, nevertheless, 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 information. One doubtless motive for this spike could be the latest launch of the Donald Trump NFT assortment.
Moreover, Polygon’s latest collaboration with social media giants similar to Reddit and Instagram may be factored in. These collaborations have helped carry extra consideration and publicity to the Polygon ecosystem.
Supply: Dune Analytics
Speaking about MATIC
Transferring 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 effectively, which was showcased by the MVRV ratio, which declined over the previous month.
This instructed that almost all MATIC holders would lose cash in the event that they offered their holdings at press time. Furthermore, the constructive lengthy/quick distinction implied a majority of long-term holders had been experiencing losses at press time.
Are your MATIC holdings flashing inexperienced? Examine 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 deal with scalability and efficiency is predicted to assist entice extra builders and customers in the long term.
At press time, the value of the MATIC token was $0.859, but it surely grew by 1.41% within the final 24 hours, based on CoinMarketCap.
