Polygon’s Strong Q1 Performance Sparks Optimism for Q2
Polygon, also known as MATIC, witnessed growth in multiple areas in the first quarter of 2023, including network usage and total value locked (TVL). However, the blockchain’s NFT ecosystem stats declined marginally.
Polygon’s Gaming Ecosystem Booms in Q1
Polygon’s gaming ecosystem experienced significant growth in Q1, with an average of 115,000 daily active gaming wallets. Over 40 million total gaming transactions were recorded on the blockchain, and the most active gamers of any EVM chain were on Polygon. Popular games deployed on Polygon included Planet IX, Sunflower Land, Hunters On-Chain, and Benji Bananas.
Polygon’s Q2 Performance
MATIC’s Q2 performance has been sluggish due to the market trend, with a decline in TVL on 19 April 2023. However, recent data shows signs of recovery. The number of daily active addresses has declined since the beginning of April, and MATIC’s demand in the derivatives market also fell. Additionally, MATIC’s weighted sentiment revealed low community confidence in the network.
Polygon’s Q1 Performance Details
Polygon’s total value locked started to increase at the beginning of 2023, reaching a peak of $1.4 billion midway through the quarter. The network’s TVL stabilized, ending the quarter with $1.2 billion. Messari’s report revealed that the blockchain’s network usage was on par in Q1 2023, with a daily average of 400,000 active addresses on the Polygon PoS chain and 22 million new addresses overall during the last quarter. The blockchain’s transaction volume remained stable, with an average of almost 3 million transactions per day since 2022. However, in terms of DEX volume, Uniswap dominated the space, enjoying 80% of the total DEX volume in Q1 2023. Aggregators, on the other hand, made up only about 8% of the overall volume and saw a decline in their share of volume QoQ. Polygon’s NFT ecosystem also registered a decline in Q1, with a little fall in daily active wallets, going from 425,000 to 389,000, a QoQ drop of 8%.
MATIC Price Decline
Unfortunately, MATIC’s price fell victim to market conditions in Q2. According to CoinMarketCap, MATIC was down by more than 8% in the last seven days and was trading at $0.9909 with a market capitalization of over $9 billion at the time of writing. MATIC’s latest price decline was accompanied by a massive surge in negative volume. The token’s supply on exchanges increased considerably, while its supply outside of exchanges declined, suggesting bearish selling pressure on MATIC.