The flow of stablecoins surged on the Polygon [MATIC] network over the last few days, impacting the DeFi space positively.One of the key areas of growth for Polygon was its Total Value Locked (TVL), which grew by 9% over the last 30 days and ranked no.4 on Defi Llama. A higher TVL indicated that more users were participating in the ecosystem at press time.
Polygon introduces new updates and upgrades
Polygon has an upcoming hardfork that would benefit users by reducing the costs associated with using the network. By reducing gas fees, Polygon would make it more attractive for users to transact on its network.
However, despite the growth of Polygon in the DeFi market, its NFT marketplaces witnessed a decline in terms of volume, based on Dune Analytics’ data. This decline in NFT volume could signify that Polygon’s NFT marketplaces were not as popular as other protocols in the space.
However, interest in Polygon’s dApps remained consistent. Over the last month, dApps such as Planet IX and Quickswap observed a spike in the number of unique active wallets on their platform.
According to dApp radar, Planet IX observed a surge of 26.19% in terms of unique active wallets and Quickswap observed growth of 1.25%. This suggested that users were still actively using and engaging with dApps on the Polygon network.
MATIC activity declines
The volume of MATIC grew from $484 million to $537 million in a month. However, the daily activity and transaction count declined at press time, suggesting that there was a decline in token activity. This could be due to the fact that users are holding on to their tokens and not actively trading them.
It remains to be seen how long the flow of stablecoins on the Polygon network will last and whether it would impact the overall growth of MATIC in the long term.
The price of the MATIC was $1.01 at press time after increasing by 2.02% in the last 24 hours, according to CoinMarketCap.
Source : Ambcrypto