All doesn’t seem well with MATIC despite Polygon’s latest accomplishment

  • Polygon noticed a decline in DEX quantity and community progress despite reaching a milestone in DEX quantity.
  • Growing NFT market and ongoing zkEVM developments have been optimistic for Polygon’s long-term potential despite the present setbacks.

Polygon [MATIC] just lately reached a brand new milestone when it comes to decentralized change (DEX) quantity. It crossed $50 billion in DEX quantity during the last 12 months, in accordance with a tweet on 11 January.

Read Polygon’s [MATIC] Price Prediction 2023-2024

However, despite reaching this watershed quantity, DEX quantity on Polygon declined over the previous couple of months, in accordance with information from Dune Analytics. This decline in quantity could possibly be on account of a wide range 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 steered that regardless that Polygon reached a brand new milestone, when it comes to DEX quantity, the expansion of Polygon on this space decelerated.

Source: 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 possible purpose for this spike could be the latest launch of the Donald Trump NFT assortment.

Furthermore,  Polygon’s latest collaboration with social media giants similar to Reddit and Instagram is also factored in. These collaborations have helped convey extra consideration and publicity to the Polygon ecosystem.

1673472913 222 All doesnt seem well with MATIC despite Polygons latest accomplishment

Source: Dune Analytics

Talking about MATIC

Moving on to the MATIC token – merely put, the community progress and velocity for the token declined, alongside with every day energetic addresses. The latter is proof of fewer energetic customers on the community.

1673472913 588 All doesnt seem well with MATIC despite Polygons latest accomplishment

Source: Santiment

This aforementioned decline impacted MATIC holders’ profitability as well, which was showcased by the MVRV ratio, which declined over the previous month.

This steered that the majority MATIC holders would lose cash in the event that they offered their holdings at press time. Moreover, the optimistic lengthy/quick distinction implied a majority of long-term holders have been experiencing losses at press time.

Are your MATIC holdings flashing inexperienced? Check the MATIC revenue calculator

1673472913 761 All doesnt seem well with MATIC despite Polygons latest accomplishment

Source: Santiment

Despite 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 value of the MATIC token was $0.859, nevertheless it grew by 1.41% within the final 24 hours, in accordance with CoinMarketCap.

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