Polygon’s DeFi presence is causing this metric to go up: will MATIC go up

  • The presence of Polygon DeFi has caused an increase in daily active addresses.
  • NFT demand on Polygon continued to decline, paralleling a lack of interest in the MATIC token.

New data from the Token Terminal indicates that Polygon [MATIC] It saw a significant increase in daily active addresses, second only to Binance Coin [BNB]. One possible reason for this increase could be the presence of Polygon in the DeFi space.

Realistic or not, here is MATIC’s market cap in terms of BTC

Help DEXs

In recent months, there has been an increase in active DeFi wallets, with much of that growth driven by QuickSwap. [QUICK], which alone accounted for 382,000 active wallets. The popularity of QuickSwap has led to an increase in DeFi activity on the Polygon network.

Other DEXs, such as Uniswap [UNI], also launched on Polygon and capitalized on this increased activity. Uniswap is one of the largest decentralized exchanges in the crypto space, and its presence on the Polygon network has helped attract more users to the network.

In nine of the 12 months of 2022, Uniswap saw its trading volume increase month over month, ending the year with a record monthly volume of $3.91 billion. This showed that Uniswap and other DEXs on Polygon have managed to capture significant market share in the DeFi space.

According to Dune Analytics, the weekly volume of all DEX on Polygon has also increased during this period. Over the past three months, DEX volumes on Polygon have increased from $277 million to $590.59 million. This indicates that the network could attract more users and merchants to its ecosystem.

Source: Dune Analytics

Due to the increase in DeFi activity, the number of unique addresses on Polygon has also increased significantly. This was a positive sign as it indicated that the network was attracting new users and not just relying on existing users.

However, despite the growth of Polygon’s DeFi sector, the volume of Polygon NFTs has continued to decline, according to Dune Analytics.

This drop in interest on the NFT has coincided with a drop in interest in the MATIC token.

Read the polygons [MATIC] Price forecast 2023-2024

Matic took a hit

According to Satniment data, the growth of the MATIC network has decreased, which indicates a decrease in the number of new addresses that transmit MATIC. In addition, the volume of MATIC tokens has also decreased from 125,000 to 45,000 in the past two weeks.

Source: feeling

It is not specified how MATIC is affected by these factors. At the time of publication, the MATIC price is at $1.01 after gaining 1.26% in the past 24 hours, according to CoinMarketCap.

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