HomeFinance NewsIs Polygon's booming network driving MATIC's 8% surge?

Is Polygon’s booming network driving MATIC’s 8% surge?

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The Polygon network has seen significant growth in activity and volume, indicating a thriving ecosystem even as it has fallen out of the limelight in the crypto space due to the rise of L2s and meme coins. The network has consistently surpassed 1 million daily active addresses for a consecutive 25 days, showing sustained interest and usage. This surge in activity is attributed to the popularity of the Polygon ecosystem, particularly in the NFT and DeFi sectors, which have witnessed a surge in interest in recent weeks.

Despite the increase in user activity, the Total Value Locked (TVL) by the network has declined significantly, suggesting that new users and trading activity are not translating into more funds being locked into Polygon’s DeFi protocols. While NFT trading volumes have grown significantly, the TVL decline indicates a shift in funds to other platforms offering better yields or features, or users withdrawing assets for profit-taking or other purposes. This decline in TVL does not necessarily reflect a lack of interest in Polygon, but rather a redistribution of assets across the decentralized finance space.

At the current trading price of $0.7453, MATIC has seen a growth of 8.52% in the last 24 hours, but the volume has declined by 47.34% during this period. The network growth of MATIC has also fallen, suggesting a decrease in interest from new addresses. Despite these fluctuations, the sustained activity on the Polygon network and the growth in NFT and DeFi sectors indicate a robust ecosystem that continues to attract users and drive network usage.

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