- MATIC’s fees and earnings have increased in recent weeks.
- The price of the token is down more than 2% in the past 24 hours and the downtrend may continue.
Polygon [MATIC] has recently noticed a rise in a key metric that points to increased usage of the network. Artemis pointed out that gas consumption in Polygon peaked over the past week.
⛽ Gas consumption on $MATIC just peaked in the last week.
We dug deeper with the Blockchain Activity Monitor.
This is what we found.🧵 pic.twitter.com/YyHlBIwJNo
— Artemis 🏹 (@Artemis__xyz) May 1, 2023
Read Polygons [MATIC] Price prediction 2023-24
Increased gas usage also allowed the network to generate more fees and revenue, as evidenced by Token Terminal data.
Source: Token Terminal
A closer look at Polygon’s DeFi space
Upon further investigation, Artemis found that most of the gas usage came from DeFi applications. According to the chart, XEN was the main player driving Polygon’s gas consumption increase, followed by others such as Matcha, Aave [AAVE]Balance [BAL]etc.
While the gas consumption of DeFi applications increased, it was not reflected in the value of the network. From ArtemisPolygon’s TVL has gained waning momentum since April 19 and was just over $1 billion at the time of writing.
Dunes facts revealed yet another concerning metric. A similar downward trend was also noticed in the number of transactions on Polygon’s DeFi ecosystem.
Source: Dune
This can be helpful
Polygon had another interesting update, which could help increase the number of transactions in the coming days. Phantom, a crypto wallet built for DeFi and NFT, announced its launch on multiple chains, including Polygon.
🚨 @phantom multichain is rolling out today!
What does it mean?
• Use one wallet for everything
• Do more with your NFTs
• Protect yourself against scams
• Understand your transactionsRead more 👇🏽 https://t.co/VAORRBrwwT
— Polygon DeFi | zkEVM Mainnet Beta (@0xPolygonDeFi) May 1, 2023
The launch will allow users to access Polygon NFTs and also automatically connect to dApps. Apart from this, the wallet also offers multiple features such as transaction previews, automated block lists, etc.
MATIC continues to suffer
MATIC’s suffering doesn’t seem to be ending any time soon as the price fell victim to another correction. 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 $0.9586 with a market cap of over $8.8 billion.
A look at MATIC’s on-chain metrics gave an idea of what went wrong. from CryptoQuant facts revealed that MATIC’s foreign exchange reserve increased, indicating higher selling pressure.
MATICthe supply on exchanges skyrocketed on May 1, which also indicated that investors were selling the asset. Demand for the token in the futures market fell, as evidenced by the Binance funding rate.
Source: Sentiment
Is your wallet green? Check the Polygon profit calculator
What to expect from Polygon
MATIC investors can expect more days of price declines as market indicators continue to favor the bears. For example, the Exponential Moving Average (EMA) ribbon indicated that the bears led the market as the 55-day EMA was well above the 20-day EMA.
MATIC’s Chaikin Money Flow (CMF) registered a downtick, moving in favor of the sellers. In addition, the Money Flow Index (MFI) also moved down, further increasing the likelihood of a sustained downtrend.
Source: TradingView