- Rocket Pool’s rETH integration on Polygon opens new opportunities for growth in the competitive DeFi sector.
- The performance of Polygon’s DEXs and the market sentiment of the MATIC token influence the trajectory.
The DeFi space has become increasingly crowded in recent years, with dominant players holding sway. As a result, networks like Polygon have had difficulties entering this space.
Read Matic’s Price Forecast 2023-2024
In the highly competitive DeFi sector, several Liquid Staking Derivatives (LSD) protocols have experienced significant growth.
Will the Rocket Pool help Polygon get to the moon?
However, Polygon has the potential to capitalize on the LSD space as the proposal to bring rETH to Polygon’s zkEVM gains momentum. The expansion of rETH into Polygon’s zkEVM will be facilitated by the launch of a community developer rate provider, boosted by Polygon Labs with $50,000 USDC to promote liquidity growth.
This development opens up exciting opportunities to link rETH to stablecoins and use it as collateral on platforms such as Aave and QiDao. The integration of oracles and rETH/USDC pools will further enhance liquidity and streamline liquidations within the Polygon protocol.
Excited to say that bring the proposal $rETH And @Rocket_Pool to Polygon zkEVM is officially live on the forums!
Check it out and give us feedback + your opinion. https://t.co/SvpuVYbqwz
— Jack Melnick (@jackmelnick_) June 16, 2023
In addition to the introduction of rETH, other factors will also influence Polygon’s future in the DeFi sector. The performance of Polygon’s decentralized exchanges (DEXs) is critical.
Currently, Meshwap, a popular DEX on the network, has witnessed a 7.8% drop in terms of unique active wallets using the protocol. Consequently, the transaction volume on the platform has also fallen during this period.
Source: Dapp Radar
As one of the largest collections on Polygon’s NFT space, y00ts has seen significant growth in its average reserve price. However, the volume is down 49.2% in the past week and the number of portfolios with this collection has also decreased significantly.
Source: Dapp Radar
MATIC takes a hit
If we examine the token associated with Polygon, MATIC, we see a similar pattern. The price has dropped significantly in recent weeks, accompanied by a slowdown in network growth. This suggests a loss of interest from new addresses in the token.
Realistic or not, here is MATIC’s market cap in terms of BTC
In addition, the decline in the MVRV ratio indicates reduced profitability for current MATIC holders and lower selling pressure. However, the difference between long and short indicates that many of these addresses are short-term owners who are likely to sell their holdings at the first sign of profit.
Source:Santiment