- Polygon comprehensively surpassed other ETH scaling networks in daily active user count.
- MATIC was in the red, plunging more than 12% over the week.
The bull market has brought users back to Polygon [MATIC], and how!
Polygon sees high user interest
The proof-of-stake (PoS) network recorded more than a million daily active addresses on average last month, with just two days experiencing less than 1 million users, according to AMBCrypto’s analysis of Artemis’ data.
In fact, Polygon comprehensively surpassed other Ethereum [ETH] scaling networks in user engagement.
To get a sense of the dominance, the second-best chain on the list, zkSync Era, recorded roughly a third of Polygon’s daily active user count last month.
Source: Artemis
Since the beginning of 2024, the number of users interacting with Polygon has more than doubled.
This was a sharp turnaround from the drought of last year’s bear market, when daily active addresses fluctuated between 300k and 400k.
Liquidity spike on Polygon
The onboarding of users also caused a significant spike in Polygon’s liquidity. As per AMBCrypto’s analysis of DeFiLlama‘s data, the total value locked (TVL) broke past $1 billion last month, a first since June 2023.
The current levels were closer to 2023 peaks, meaning that losses made last year have been effectively erased.
The next target would be the $2 billion-mark hit in August 2022, and subsequently the all-time high (ATH) of $9.8 billion in June 2021.
Source: DeFiLlama
MATIC still in the red
But despite Polygon’s exploits on the network front, the native token MATIC continued to trend lower.
The 17th largest cryptocurrency plunged 12% over the week, and more than 21% in the last 30 days, according to CoinMarketCap.
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Whales interaction dropped significantly since mid-March, as evidenced by drop in large transactions worth more than $100,000.
Interestingly, large whales, i.e, those with holdings of more than 100,000, sold their MATICs in this period. These were likely scooped by smaller whales with wallet size between 1,000–100,000.
Source: Santiment