- MATIC was one of the biggest losers in the market last month.
- On May 16, active users on Polygon rose to their highest level in five weeks.
After a long period of rest, network activity on Polygon [MATIC] began to gain strength. According to DeFiLlama, the active users on Ethereum [ETH] sidechain surged to 389,000 on May 16, reaching its highest level in five weeks.
Source: DeFiLlama
Read Polygons [MATIC] Price forecast 2023-2024
The jump in the user base showed a proportional effect on the number of transactions processed on the network.
Much of the transaction volume was driven by L2 scaling solution Polygon zkEVM. According to a tweet according to Polygon, the transaction volume on the zero-knowledge rollup (zk-rollup) reached an all-time high in recent days.
Polygon’s new initiative
Polygon has grown to fame in recent months. Whether it was the launch of the highly anticipated Polygon zkEVM or the hard fork intended to stabilize gas rates on the network, the ecosystem has taken a proactive step towards making blockchain technology more efficient and accessible.
As part of the ongoing effort, Polygon co-founder Sandeep Nailwal announced the launch of the Nailwal Fellowship – a program aimed at providing financial assistance and resources to budding Web3 developers.
Nailwal said he would invest $500,000 of his own money in this initiative, divided equally between 10 people each year.
To learn more about the Fellowship, read more here and submit your application before the June 15 deadline: https://t.co/Xha8DWOjXm 11/11
— Sandeep Nailwal | sand deep. polygon 💜 (@sandeepnailwal) May 16, 2023
In addition to the scholarship money, the fellows will receive mentorship from Symbolic Capital, a venture capital fund founded by Sandeep Nailwal. And access to top founders and investors, to help them build full time in web3 for 6 months.
MATIC remained immune
The positive developments from the ecosystem could not improve the native token MATIC. The token is down 1.4% in the last 24 hours at the time of writing.
In fact, MATIC’s woes are not recent. It has been one of the biggest losers in the market over the past month, with losses of more than 27% going to press, data from CoinMarketCap revealed.
The price losses dented investor confidence in MATIC as weighted sentiment continued to move into the negative zone. As a result, user adoption was hit, evidenced by the steady decline in the number of new addresses.
Source: Sentiment
Realistic or not, here is MATIC’s market cap in BTC terms
In the futures market, MATIC’s Open Interest (OI) is up 3.24% in the last 24 hours. The statistic hit $182.82 million, according to Coinglass data.
Most of the new positions opened were aimed at price gains, as evidenced by the increase in Longs/Shorts ratio.
Source: Coinglass