• Polygon’s gaming activity has been increasing significantly over the past few months, resulting in 32% of fees spent and 35% of active addy.
• DeFi and DEX activity on the network have declined, leading to a decrease in TVL collected by Polygon and its native token MATIC.
• Activity from addresses exchanging MATIC decreased, as well as its network growth, suggesting a lack of interest from new buyers.
Increasing Gaming Interest on the Polygon Network
Polygon [MATIC] has seen high activity on its network over the past few months due to increasing gaming interest. According to Artemiz, gaming was responsible for 32% of all fees spent and 23% of all transactions made on the Polygon network. Additionally, it was also seen that gaming was the dominant category on Polygon today with 35% of active addresses being attributed to it.
Decreasing DeFi & DEX Activity
The decreasing dApp activity on the Polygon network impacted other areas such as DeFi and DEXes. Popular dApps on Polygon such as Balancer [BAL] saw a massive decline in activity with 16.79% fewer unique active wallets compared to last week. The overall volume for DEXes also decreased from $241 million to $185 million in one week which further impacted the total value locked (TVL) collected by Polygon – falling from $1.23 billion to $1.16 billion during this period . Additionally, revenue generated by Polyton fell 34.1%.
Impact On MATIC Token
MATIC -the native token of Polygon- faced similar challenges during this period as well; Data from Santiment suggested that daily activity of addresses exchanging MATIC fell along with a decrease in its network growth – signaling lack of interest from new buyers for purchasing this asset .
Realistic Market Cap For MATIC?
It remains unclear what could be expected from MATIC’s market cap going forward considering these recent changes across its ecosystem .
Conclusion
Overall it is evident that while gaming has provided some positive impact on the overall performance metrics for Polgyon – especially in terms of fees spent- there are still some areas where improvements can be made such as DeFi and DEXes before we see any significant progress with regards to its native token MATIC .