Polygon’s dApp activity upsurge could mean this for MATIC in the days to come

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  • Poly­gon wit­nessed high activ­i­ty in terms of active users on dApps
  • How­ev­er, its TVL con­tin­ued to decline along with its MVRV ratio

Accord­ing to a 3 Decem­ber tweet by token ter­mi­nal, dApp activ­i­ty on the Poly­gon net­work con­tin­ued to grow over the last few months. Poly­gon grew its mar­ket share in terms of dai­ly active users and out­per­formed com­peti­tors over the course of the last few months. This spike in activ­i­ty could aid MATIC’s ail­ing prices.


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


It’s the time for dApp active users

At the time of writ­ing, there were 412,000 dai­ly active users on Polygon’s dApps. The net­work ranked sec­ond in this met­ric out of all cryptocurrencies. 

Source: token terminal

This spike in activ­i­ty could be attrib­uted to pop­u­lar dApps on the Poly­gon net­work, such as Plan­et IX and Quick­Swap. Both these dApps wit­nessed a spike in terms of unique active wal­lets over the past week.

Fur­ther­more, accord­ing to Dap­pRadar, Plan­et IX observed a growth of 3.46% in terms of unique active wal­lets over the last sev­en days. Quick­swap, on the oth­er hand, wit­nessed a 22.55% spike in the same peri­od. Plan­et IX also grew in terms of vol­ume, as can be seen from the image below. The num­ber of trans­ac­tions on the dApp increased as well.

Source: Dap­pRadar

How­ev­er, this growth in dApp activ­i­ty did not trans­late to improve­ments in the DeFi space. Accord­ing to DefiLla­ma, Polygon’s total val­ue locked (TVL) wit­nessed a sig­nif­i­cant decline. In the past 30 days, Polygon’s TVL depre­ci­at­ed from 1.24 bil­lion to 1.07 bil­lion. At the time of writ­ing, Polygon’s TVL had depre­ci­at­ed by 0.44% in the last 24 hours.

Although Poly­gon did not per­form in the DeFi space, its per­for­mance on the NFT front did offer some respite. As can be seen from the image below, top NFTs did excep­tion­al­ly well over the last sev­en days on the Poly­gon network.

One NFT col­lec­tion that stood out in the last week in terms of growth was The Sand­box. It wit­nessed a spike of over 300% in terms of vol­ume and sales. How­ev­er, this could be because of the launch of their new Wave 2 Land sale.

Source: Dap­pRadar

Are MATIC HODLers in a dilemma?

These devel­op­ments had lit­tle pos­i­tive impact on MATIC hold­ers, as Polygon’s Mar­ket Val­ue to Real­ized Val­ue (MVRV) ratio declined. This implied that most MATIC hold­ers would lose mon­ey if they end­ed up sell­ing.

How­ev­er, the Long/Short Dif­fer­ence indi­ca­tor sug­gest­ed that address­es that have held onto MATIC for a longer peri­od could still make a prof­it despite Polygon’s declin­ing prices. Thus, it remains to be seen whether long time Poly­gon hold­ers will con­tin­ue to show faith in MATIC or suc­cumb to the sell­ing pres­sure and cash out.

Source: San­ti­ment



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