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- Polygon noticed a decline in DEX quantity and community progress 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] lately reached a brand new milestone by way of decentralized change (DEX) quantity. It crossed $50 billion in DEX quantity during the last 12 months, based on a tweet on 11 January.
$50B+ in DEX quantity on @0xPolygon during the last 12 months🤌 pic.twitter.com/ZSDnEvwcrj
— Narb (@NarbTrading) January 10, 2023
Learn Polygon’s [MATIC] Price Prediction 2023-2024
Nevertheless, regardless of reaching this watershed quantity, DEX quantity on Polygon declined over the previous couple of months, based on knowledge from Dune Analytics. This decline in quantity might be because of a wide range of elements, corresponding to elevated competitors from different platforms or a normal decline in buying and selling exercise within the crypto market.
This decline in quantity advised that regardless 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, 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 knowledge. One possible cause for this spike could be the latest launch of the Donald Trump NFT collection.
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 progress and velocity for the token declined, together with day by day lively addresses. The latter is proof of fewer lively customers on the community.
Supply: Santiment
This aforementioned decline impacted MATIC holders’ profitability as properly, which was showcased by the MVRV ratio, which declined over the previous month.
This advised that almost all MATIC holders would lose cash in the event that they bought their holdings at press time. Furthermore, the constructive lengthy/brief distinction implied a majority of long-term holders have been experiencing losses at press time.
Are your MATIC holdings flashing inexperienced? Test the MATIC profit 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 concentrate on scalability and efficiency is predicted to assist appeal to extra builders and customers in the long term.
At press time, the value of the MATIC token was $0.859, however it grew by 1.41% within the final 24 hours, based on CoinMarketCap.
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