Polygon Witnesses GameFi Growth, But Will Lurking Bears Impede MATIC’s Rise?
Polygon (MATIC) has seen a slight increase in daily active addresses over the past 30 days, thanks to the much-anticipated zkEVM mainnet launch that attracted more users to the network. However, despite increased users, the network has faced challenges such as declining fees and revenue in recent weeks, along with concerning signs in its zkEVM status.
State of Polygon zkEVM
After a successful launch, zkEVM’s growth seems to have stalled, as indicated by data from Dune. Unique depositors on zkEVM have declined, and daily inflow of tokens has also shown a downtrend.
These Can Bring More Trouble
Further analysis using Santiment’s charts revealed other concerning metrics for Polygon. Development activity on the network declined sharply in the past week, indicating fewer efforts by developers to improve the network. MATIC’s weighted sentiments also decreased, reflecting less confidence from investors.
Growth in GameFi Noted
Despite the challenges, Polygon’s GameFi network has shown growth. The League of Kingdoms chose Polygon for their much-awaited Drago update, which could potentially drive user growth and revenue in the coming months. The League of Kingdoms is the world’s first blockchain-based massive multiplayer (MMO) strategy game, allowing players to compete on the battlefield and own a piece of the game company’s future. Additionally, Polygon staking has also seen growth, with total stakers increasing by over 17% in the last 24 hours.
MATIC’s Reaction to These Developments
MATIC’s price has reacted positively to these updates, with an increase of over 4.5% in the last seven days according to CoinMarketCap. However, its on-chain performance has not fully supported this price uptick. Santiment data shows that MATIC’s MVRV ratio declined slightly on April 4, and the Binance funding rate, though green, was not as high as expected, indicating lower demand in the derivatives market. Moreover, concerns have been raised about MATIC’s supply, as its supply on exchanges has increased while supply outside of exchanges has decreased, which is typically considered a bearish signal.
In conclusion, Polygon has experienced growth in its GameFi network, but challenges in its zkEVM status, along with declining fees and revenue, have raised concerns. MATIC’s price has shown some positive reactions, but on-chain performance and supply dynamics indicate potential challenges ahead. As the crypto market continues to evolve, keeping a close eye on Polygon and MATIC’s performance will be crucial to understanding their future trajectory.
Ecosystem
Research
News Network
About