- Polygon was close to approaching 10 million monthly active users on the network.
- Price of MATIC declined, along with network growth and transaction count.
Despite the increasing popularity of other cryptocurrencies and blockchain networks, Polygon [MATIC] continued to attract a growing number of users to its platform.
Monthy activity on the decline
Data from token terminal indicated that the number of users on the Polygon network were close to 10 million at the time of writing.
Source: X
The surge in activity on the network was driven by the popularity of the Polygon ecosystem. Despite the rising activity on the network, the state of DeFi on the network wasn’t as positive.
AMBCrypto’s analysis of Artemis’ data revealed that the DEX (Decentralized Exchange Volumes) on the network had fallen significantly over the last few days.
Adding to that, the TVL (Total Value Locked) on the Polygon network also fell significantly during this period. According to the data, the daily TVL collected from Polygon fell from $1 billion to $942 million over the last few days.
Screenshot: Artemis
Due to these factors, the fees generated by the network have fallen materially. Coupled with that the revenue generated by the network declined significantly.
If these problems continue, it would be hard for Polygon to be able to scale and have funds to make improvements to the network.
Source: Artemis
The number of code commits occurring on the Polygon network had declined materially over the past month. Additionally, the number of core developers on the network had also fallen significantly.
If this trend continues, the number of updates and upgrades occurring on the network could slow down. New updates and upgrades help improve sentiment around the network.
They also help attract new users to network and retain old ones.
Source: token terminal
How is MATIC holding up?
The price of MATIC wasn’t doing too well either. At the time of writing, the price of MATIC was $0.7062 reflecting a decline of 1.82% over the past month.
The network growth of the token had also plummeted during this period, indicating a decline in interest from new addresses.
Moreover, the transaction volume around Polygon had also fallen significantly implying that the frequency with which MATIC was being traded at, had fallen as well.
Source: Santiment