Assessing Polygon and MATIC: Are They Truly Thriving or Cause for Concern?

Assessing Polygon’s Performance

Since the start of the year, Polygon has experienced a significant increase in new user adoption. However, recent developments indicate a mixed picture.

An Influx of New Users

Since the beginning of 2024, Polygon has witnessed a substantial surge in new user registrations, totaling 12.3 million as of 27 March. This influx accounts for approximately 70% of new users across various observed EVM chains this year, alongside Ethereum.

  • Impressive growth rate of 359.7% between January and March 2024.
  • Significant user base establishment despite being comparatively older than many EVM chains.

With a larger user base, transaction activity on the Polygon network is expected to increase, potentially leading to higher transaction fees. The revenue generated by Polygon surged by 51.9% over the past month alone.

Development Activity

Despite the surge in new users and revenue, there’s been a slowdown in development activity on the Polygon network. The number of code commits made by Polygon developers has declined, suggesting a potential slowdown in updates and upgrades.

  • Decline in code commits could impact the pace of network development.

Furthermore, there has been a decline in decentralized exchange (DEX) volumes on the network, indicating a slowdown in the DeFi sector activity. However, the Total Value Locked (TVL) on the network continues to rise, potentially offsetting the impact of declining DEX volumes.

Assessing MATIC’s Performance

Meanwhile, MATIC has faced challenges in recent times, with its price experiencing significant fluctuations.

  • Trading at $0.8813, down 11.33% over the past week.
  • Increased trading velocity despite price decline.

The uptick in MATIC transactions could potentially contribute to price stabilization and future growth.