As Polygon Gets Closer to 10 Million Users, Will It Raise MATIC Prices?
As Polygon Gets Closer to 10 Million Users, Will It Raise MATIC Prices?
- Nearing 10 million users, Polygon [MATIC] continues to draw a rising user base despite growing in popularity among other cryptocurrencies.
- The network's scalability and capacity to finance upgrades, however, may be impacted by the notable reduction in DeFi activity, DEX volumes, TVL, and total revenue.
Polygon [MATIC] maintained its user base growth even in the face of competing cryptocurrencies and blockchain networks gaining traction. At the time of writing, Token Terminal data showed that there were almost 10 million users on the Polygon network. The popularity of the Polygon ecosystem was the driving force behind the spike in activity on the network. Despite the increased traffic, the network's DeFi condition wasn't as good. The DEX (Decentralized Exchange) volumes on the network have decreased dramatically during the previous several days, according to a review of Artemis' data.
Furthermore, there was a noticeable decrease in the TVL (Total Value Locked) on the Polygon network. The data shows that throughout the past few days, Polygon's daily TVL decreased from $1 billion to $942 million. The fees that the network generates have significantly dropped as a result of these reasons. As a result, the network's income has drastically decreased as well. It will be difficult for Polygon to grow and obtain the funding required for network upgrades if these problems continue.
Over the past month, the Polygon network has seen a sharp decrease in the quantity of code commits. The quantity of core developers has likewise significantly decreased. The network's rate of updates and upgrades may slow down if this pattern persists. Retaining current users, drawing in new ones, and enhancing sentiment all depend on these improvements and updates.
An Examination of Polygon (MATIC) Price Movement
MATIC's price was also performing below expectations. When this article was written, MATIC's price was $0.7062, down 1.82% from the previous month. The token's network growth fell precipitously during this time, suggesting a decline in interest from new addresses. Furthermore, there was a notable decline in transaction volume in the vicinity of Polygon, suggesting a reduction in the frequency of MATIC deals.
Although Polygon's current situation doesn't seem all that thrilling, company has achieved some significant advancements in other areas. Based on data, Polygon has remained one of the biggest Web3 ecosystems in the world, with the second-highest amount of transactions over the last six months. According to Crypto News Flash, Polygon exceeded 800 million transactions over this time, placing it second in the industry behind TRON and slightly ahead of BNB Chain.
Pessimistic proofs utilizing SP1 have been released by the Polygon team in an effort to improve secure cross-chain interoperability. Pessimistic proofs for the AggLayer will be generated using SP1, the top zkVM solution constructed with Polygon Plonky3, guaranteeing the security of the aggregated network. According to the Crypto News Flash report, Polygon's AggLayer seeks to enable safe, cross-chain interoperability by producing pessimistic proofs using SP1.
