- dApps like Planet IX and The Sandbox contributed to Polygon’s GameFi success.
- DEX volumes continued to increase, but the price of MATIC fell.
In the crypto space, there has been a constant race between different protocols in terms of activity. With Throne [TRX]Binance coin [BNB]and arbitration [ARB] attracting large amounts of activity on their networks makes it difficult for protocols like Polygon [MATIC] compete.
Realistic or not, here is MATIC’s market cap in terms of BTC
Polygon here to not play games
However, Polygon’s advancements in the gaming sector may give the protocol an edge. According to Delphi Digital, Polygon became the leading chain in GameFi on May 5. In addition, Polygon captured 34.93% of the total GameFi market in the last 90 days.
Other L1 chains such as Solana [SOL] and Binance Smart Chain [BNB] acquired the second and third position in terms of market share, accounting for 26.80% and 17.90% of the market respectively.
.@0xPolygon has the most active GameFi wallets of all Layer-1s in the last 90 days. pic.twitter.com/yqJI1AQSX1
— Delphi Digital (@Delphi_Digital) May 14, 2023
Gaming dApps like Planet IX and The Sandbox [SAND] were largely responsible for Polygon’s dominance in this sector. Over the past week, both protocols have seen a spike in terms of unique active wallets on their networks. Planet IX showed a 13.64% increase in active wallets, while The Sandbox peaked at 3.4%.
This wave of activity also positively influenced the protocols in other areas. For example, transactions on the Planet IX network rose by 60.88% last week. Subsequently, the volume on the dApp grew by 26.9%.
However, the spike in activity on the dApp did not lead to larger NFT transactions. According to data from Dapp Radar, despite the high activity, the number of NFT transactions on these gaming protocols continued to decline.
Source: Dapp Radar
In addition to the GameFi sector, Polygon also showed dominance in the DeFi markets. In terms of TVL, Polygon outperformed most protocols except Ethereum [ETH].
Polygon’s dominance in the DeFi sector can be attributed to the popularity of its DEXes. The data from Artemis indicated that the DEX volumes on the Polygon network surpassed most other networks in the crypto space.
Source: Artemis
Read Polygons [MATIC] Price forecast 2023-2024
Despite Polygon’s dominance in the DeFi and Gaming sectors, MATIC saw little growth. According to CoinMarketCap facts, The price of MATIC fell from $0.93 to $0.88 in the past week as of this writing.
During the same period, the volume and number of transactions of MATIC also decreased.
Source: Sentiment