- Polygon outperformed Ethereum in NFT transactions, solidifying its layer 2 place.
- Regardless of development within the NFT market, the community confronted declining dApp exercise and token quantity.
Polygon [MATIC], a layer 2 scaling resolution for Ethereum [ETH], has been outperforming the latter by way of the variety of NFT transactions made on every protocol. Furthermore, the growing NFT transactions are strengthening Polygon’s place within the layer 2 house.
The variety of Polygon NFT transactions in January exceeded Ethereum NFT for the second consecutive month, however the common transaction payment was a lot decrease. Numerous information of the NFT lending ecosystem have hit report highs, with BendDAO’s borrowing quantity exceeding $36 million.
— Wu Blockchain (@WuBlockchain) February 1, 2023
Learn Polygon’s [MATIC] Price Prediction 2023-2024
The Polygon NFT market has been rising, and despite the fact that the variety of transactions has been excessive, the typical charges generated by these transactions have been low.
The low charges might have an effect on the community’s total capacity to generate income, nevertheless, it may be why many customers have been choosing this layer 2 resolution.
Supply: Dune Analytics
Nevertheless, the charges didn’t influence Polygon‘s total TVL, which elevated by 2.26% over the past 30 days, in line with L2Beats information. Notably, the TVL amounted to $2.50 billion.
Supply: L2BEATS
Not all excellent news for MATIC
A possible menace to Polygon might be the decline in day by day exercise on its dApps. Fashionable dApps like Balancer and Planet IX have witnessed a lower in distinctive energetic wallets, with a 35% lower for Planet IX and a 12.6% lower for Balancer within the final 24 hours. The variety of transactions on Planet IX additionally fell by 36.95% within the final seven days.
A decline in dApp curiosity might scale back Polygon’s dominance by way of day by day energetic customers. A big a part of exercise on the Polygon community instantly resulted from the recognition of its dApps. If this sample continues, Polygon could be affected negatively within the coming future.
Supply: Dapp Radar
Regardless of the expansion of the NFT market, Polygon‘s token, MATIC, has not seen a corresponding improve. In line with information from Santiment, the general quantity for MATIC fell from 2.06 billion to 908.67 million.
How a lot are 1,10,100 MATIC worth today?
Moreover, the event exercise of Polygon declined as properly. This urged that the contributions made by Polygon’s workforce to its GitHub have fallen, which might have an effect on the protocol’s future development and improvement.
Supply: Santiment
Total, whereas the expansion of the Polygon NFT market is a constructive signal, the decline in day by day exercise on its dApps and the falling quantity of its token should be monitored intently to make sure the protocol’s continued success.