All doesn’t seem well with MATIC despite Polygon’s latest accomplishment

• Polygon noticed a decline in DEX quantity and community progress regardless of reaching a milestone in DEX quantity.
• Rising NFT market and ongoing zkEVM developments have been optimistic for Polygon’s long-term potential regardless of the present setbacks.

Polygon [MATIC] not too long ago reached a brand new milestone by way of decentralized trade (DEX) quantity. It crossed $50 billion in DEX quantity during the last 12 months, based on a tweet on 11 January.

$50B+ in DEX quantity on @0xPolygon during the last 12 months🤌 pic.twitter.com/ZSDnEvwcrj

— Narb (@NarbTrading) January 10, 2023

Learn Polygon’s [MATIC] Worth Prediction 2023-2024

Nonetheless, regardless of reaching this watershed quantity, DEX quantity on Polygon declined over the previous few months, based on knowledge from Dune Analytics. This decline in quantity could possibly be on account of quite a lot of components, corresponding to elevated competitors from different platforms or a common decline in buying and selling exercise within the crypto market.

This decline in quantity instructed that although Polygon reached a brand new milestone, by way of DEX quantity, the expansion of Polygon on this space decelerated.

Supply: Dune Analytics

Not all hope is misplaced for Polygon

The declining DEX exercise, nonetheless, didn’t have an effect on Polygon’s NFT market.

Polygon’s rising NFT marketplaces confirmed positivity, with a spike in NFT quantity as reported by Dune Analytics knowledge. One doubtless motive for this spike can be the current launch of the Donald Trump NFT assortment.

Moreover,  Polygon’s current collaboration with social media giants corresponding to Reddit and Instagram is also factored in. These collaborations have helped deliver extra consideration and publicity to the Polygon ecosystem.

Supply: Dune Analytics

Speaking about MATIC

Shifting on to the MATIC token – merely put, the community progress and velocity for the token declined, together with each day energetic addresses. The latter is proof of fewer energetic customers on the community.

Supply: Santiment

This aforementioned decline impacted MATIC holders’ profitability as properly, which was showcased by the MVRV ratio, which declined over the previous month.

This instructed that the majority MATIC holders would lose cash in the event that they offered their holdings at press time. Furthermore, the optimistic lengthy/brief distinction implied a majority of long-term holders have been experiencing losses at press time.

Are your MATIC holdings flashing inexperienced? Examine the MATIC revenue calculator

Supply: Santiment

Regardless of these short-term setbacks, Polygon continued to push ahead with its ongoing developments in zk-EVM, which goals to make it simpler to construct and deploy zk-rollup dApps on the platform. The platform’s give attention to scalability and efficiency is anticipated to assist entice extra builders and customers in the long term.

At press time, the worth of the MATIC token was $0.859, however it grew by 1.41% within the final 24 hours, based on CoinMarketCap.