- Polygon outperformed Ethereum in terms of activity over the last 24 hours.
- However, TVL growth for Polygon remains low as DEX volume declined.
Polygon [MATIC] has emerged as a prominent L2 solution in recent years, with several partnerships and an influx of NFT migrations contributing to its ability to remain competitive with other layer 2 solutions.
Read Polygon’s [MATIC] Price Prediction 2023-2024
As per the data shared by Token Terminal, Polygon surpassed Ethereum [ETH] in daily active addresses owing to these factors. In the previous 24 hours, the count of daily active addresses on the Polygon network stood at 399,950, while Ethereum recorded 376,350 users.
— Token Terminal (@tokenterminal) April 8, 2023
The surge in activity on Polygon can be attributed to several factors, and one of them is the performance of its dApps. Notably, well-known dApps like Planet IX observed a significant increase in both active addresses and volume, with the latter rising by 15.29% in the last month.
Source: Dapp Radar
The NFT market of Polygon also experienced a surge in interest, and this can be linked to the migration of y00ts NFT. After the transfer to the Polygon network, the y00ts NFT witnessed a notable rise in both volume and the count of holders.
Since the migration started on 28 March, y00ts’ secondary sales saw $4.6M in volume from 1,043 sales, averaging $4,461 per sale.
Not all roses and sunshine
However, Polygon faced some challenges in the DeFi space, particularly in its DEX volume. Compared to other Layer 2 solutions, such as Arbitrum [ARB], Polygon’s DEX volume saw a significant decline. This had a knock-on effect on the total value locked (TVL) on the network, which also experienced a decrease.
Source: Artemis
Polygon’s native token, MATIC, was also facing some setbacks. Santiment’s data revealed that the overall transaction count on the network saw a decline, and the price of MATIC dropped from $1.16 to $1.096 during this period.
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Despite the price correction, there was a lack of interest in MATIC among new addresses, which was evident from the declining network growth.
Source: Santiment
Only time will tell whether Polygon’s surge in daily activity will have a positive impact on the price in the future.