Polygon’s DeFi presence caused a spike in daily active addresses. Demand for NFT on Polygon continued to decline in parallel with MATIC’s disinterest.

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

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

DEX’s lend a helping hand

Over the past few months, there has been a surge in active DeFi wallets, with a significant portion of this growth being driven by QuickSwap [QUICK], which accounted for 382,000 active wallets alone. The popularity of QuickSwap led to an increase in DeFi activity on the Polygon network.

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

In nine of the 12 months in 2022, Uniswap recorded a month-over-month increase in trading volume, ending the year with an all-time high monthly volume of $3.91 billion. It showed that Uniswap and other DEXs on Polygon have managed to gain significant market share in the DeFi space.

According to Dune Analytics, weekly volume per DEX on Polygon also increased during this period. In the past three months, volume for DEXes on Polygon has grown from $277 million to $590.59 million. This indicated that the network could attract more users and merchants to its ecosystem.

Source: Dune analysis

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

However, despite the growing DeFi sector on Polygon, the volume for Polygon NFTs has continued to decline, according to Dune Analytics.

This fall in NFT rates was accompanied by a drop in interest in the MATIC token.

Read Polygons [MATIC] Price forecast 2023-2024

MATIC takes a hit

According to data from Satniment, network growth for MATIC has slowed, suggesting that the number of new addresses ported by MATIC has declined. Moreover, the volume for the MATIC token has also fallen from 125,000 to 45,000 in the past two weeks.

Source: Sentiment

It remains to be determined how MATIC will be affected by these factors. At the time of writing, the price of MATIC was $1.01 after rising 1.26% in the past 24 hours, according to CoinMarketCap.





This post Polygon’s DeFi presence causes a rise in this stat: Will MATIC rally

was published first on https://ambcrypto.com/polygons-defi-presence-causes-surge-in-this-metric-will-matic-rally/

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