Why MATIC is having a difficult time to recover despite record progress
Polygon has established its presence in the DeFi space and continues to do so, and this way, what Polygon lacks in the spot market is being fulfilled by killing it in the DeFi market.
Polygon achieved a huge milestone recently after it hit 19000+ dApps this month. The DeFi network currently has over $3.69 billion locked in all, with over 8000 active teams on a monthly basis.
The low gas fees and quick finality has been drawing developers and investors alike to the chain, and their loyalty is visible in their behavior. Alchemy data shows that 65% of the teams integrated exclusively on Polygon, while another 35% deployed on Ethereum.
A significant proportion of the credit goes to alchemy, whose integration in May pushed the development rate significantly higher.
Furthermore, the explosion of NFTs helped Polygon in attracting more developers, which is why between October and now, Dapps on Polygon has grown sixfold.
Compared to last year, Polygon this year is observing significantly higher interest when it comes to NFTs as the total volume it noted throughout 2021 was $295 million, whereas NFTs just in these last four months have managed to accrue over $236 million.
Polygon NFTs volume every year | Source: Dune – AMBCrypto
Although the NFT trading volume and selling have gone down over the last month or so, it is on the path to recovery eventually.
However, Polygon’s DeFi front is the only attractive component of the network atm since its price action is certainly not at its best. Trading at $1.41, MATIC is at its 6-month lowest, thanks to the 18.32% decline observed over the week, which will result in panic from a lot of investors.
MATIC price action | Source: TradingView – AMBCrypto
As it is over 81.73% of MATIC holders are out of
Read more on ambcrypto.com
