Layer 2 scaling resolution Polygon maintains robust community exercise even because the broader cryptocurrency market and its native token, MatikThe second quarter of 2024 skilled a downturn, based on the most recent report from market intelligence platform Messari.
Polygon weathers crypto market downturn
Though MATIC’s circulating market capitalization fell 44.3% throughout the quarter to $5.5 billion, making it the twentieth largest crypto asset (at the moment ranked twenty sixth), the protocol’s on-chain metrics stay robust.
That is in distinction to bigger cryptocurrencies similar to Bitcoin and Ethereum, which see their very own benefits Market worth Yr-on-year decreases of 12% and 6% respectively.
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Messari mentioned that the important thing driver for Polygon’s steady community efficiency within the second quarter of this 12 months is the implementation of Ethereum Enchancment Proposal (EIP) 4844 on the Polygon mainnet within the first quarter of 2024.
This improve launched “blobs” to the community, considerably decreasing the typical dealing with payment Polygon’s worth dropped from $0.017 to $0.01, a lower of 41.1%.
Consequently, Polygon’s income from community transaction charges fell 40.6% to $4 million within the second quarter of 2024. In truth, Polygon’s person metrics proceed to soar, with a number of of the protocol’s key metrics seeing robust progress.
On-chain actions and ecosystem progress
The report states that the typical quantity Each day energetic addresses Climbed to 1.2 million, a quarterly enhance of 47.6%. The typical each day variety of return addresses elevated much more, rising by 50.5% to 1 million. Moreover, new addresses added to the community grew by a median of 31.7% per day, reaching 167,800.
The report additionally identified that Polygon’s transaction quantity additionally remained steady, with a median each day transaction quantity of 4.1 million, barely decrease than its all time excessive A rise of three.9% in contrast with the earlier quarter.
By comparability, second-tier networks Arbitrum (ARB) and Base common each day energetic addresses of 545,000 and 528,000, respectively.
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And Polygon’s decentralized finance (DeFi) Complete worth locked (TVL) fell 22.9% to $1.0 billion, primarily as a result of a decline in MATIC costs quite than internet capital outflows. Messari stories that TVL in MATIC truly elevated by 38.1% to 1.8 billion tokens.
Nevertheless, DeFi protocols on Polygon have had blended outcomes, with Aave, Uniswap, and SushiSwap all seeing TVL declines of 13% to 25%. Quickswap suffered the biggest decline, reaching 35%.
Lastly, Polygon’s non-fungible token (NFT) market additionally remained steady, with common each day NFT buying and selling quantity falling barely by 5.7% to $1.8 million. Nevertheless, the variety of each day NFT gross sales truly elevated by 1.8% to 52,000 models, highlighting continued curiosity from collectors.
As of this writing, MATIC is buying and selling up simply 5% to $0.512, having hit a 2-year low of $0.428 on July 5.
Coupled with this worrying worth motion, the coin’s buying and selling quantity has dropped by 30% over the previous few days, totaling $197 million, based on CoinGecko knowledge knowledge. All of this leaves MATIC inside 82% of its all-time excessive of $2.91 reached throughout the 2021 bull run.
Featured picture from Shutterstock, chart from TradingView.com
