- Polygon’s fees and earnings have plummeted over the past 90 days.
- Supply distribution was bearish, but open interest fell.
Polygons [MATIC] network stats have stagnated in recent months, indicating reduced usage. However, Polygon’s gaming ecosystem is thriving with its latest collaboration. Is gaming performance enough for the blockchain to recover?
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Polygon’s dwindling network stats
Artemis’ facts revealed that Polygon’s daily active addresses hit a plateau over the past three months. A similar trend was also seen in the number of daily transactions, indicating a decline in usage and adoption. In addition, the value of the network also registered a decrease, which was evidenced by the drop in TVL.
Source: Artemis
To add to the story, the decrease in Polygon usage was also evidenced by the network cost. According to Token Terminal, blockchain network costs have fallen sharply over the past 90 days. Thanks to that drop, blockchain revenues also plummeted, which looked worrying for the network.
Source: Token Terminal
Gaming ecosystem thrives
While Polygon’s main stats dwindled, the gaming ecosystem, on the other hand, flourished. This happened mainly because of the recent partnership with Immutable.
Robbie Ferguson, co-founder of Immutable, mentioned in a tweet about the agreement. According to the tweet, Immutable has added more games in the past month than it ever has in its life.
Sandeep Nailwal, co-founder of Polygon, said in a different tweet that with Immutable’s behemoth of a AAA gaming ecosystem, Polygon’s zk-powered Appchains have become the de facto for gaming. Whether the growth in gaming will be enough for the blockchain to stabilize its metrics is a question only time can answer.
MATIC investors are struggling
In the midst of all this, the price of MATIC registered a decline in the past 24 hours, which was worrying. According to CoinMarketCap, the price of MATIC is down more than 2% in the last 24 hours. At the time of writing, it was trading at $0.6396 with a market cap of over $5.9 billion, making it the 13th largest cryptocurrency. Take a look at MATICThe distribution of the supply was more of a concern.
For example, the supply on exchanges increased, while the supply outside of exchanges decreased. This is a typical bearish signal. In addition, the percentage of the supply that is in the hands of top addresses has also decreased slightly.
Source: Sentiment
Read Polygons [MATIC] Price prediction 2023-24
Polygon’s days may get colder
According to Coinglass, Polygon’s outstanding interest has declined. A decline in the metric generally means that the current price trend may come to an end.
Therefore, the possibility of a trend reversal cannot be ruled out. However, CryptoQuant’s facts revealed that MATICThe bank’s foreign exchange reserve increased, suggesting it was under selling pressure.
Source: Coinglass