As of Q2 2024, both the cryptocurrency market as a whole and Polygon’s own token, MATIC, have been losing value. However, Messari, a market information tool, says that Polygon’s network has been very active.
Its market value has dropped 44.3% in the last three months, bringing it down to $5.5 billion, making it the 20th most important coin. On the other hand, the market values of major coins like Bitcoin and Ethereum fell by 12% and 6%, respectively.
Messari says that EIP 4844 was implemented on Polygon’s mainnet in the first quarter of 2024, which made the network more secure. With the addition of “blobs,” the average transaction fee dropped from $0.017 to $0.01, which is a 41.1% drop.
Polygon Fee Income Drops
In Q2 2024, Polygon’s transaction fee income dropped 40.6% to $4 million. It wasn’t because fewer people were using the service; it was just charge less. But the number of users kept going up.
The study says that from one quarter to the next, the number of addresses that were used every day rose by 47.6%, reaching 1.2 million. The number of new addresses added rose by 31.7% every day, reaching 167,800. At the same time, the number of addresses that were sent back rose by 50.5%, reaching 1 million.
There were the same number of deals as last quarter, or 4.1 million per day, which is 3.9% more than the previous quarter. Around 545,000 addresses were active every day on Layer 2 networks Arbitrum (ARB) and 528,000 addresses were active every day on Base.
The amount of funds that was locked up in Polygon’s decentralized finance (DeFi) dropped 22.9%, to $1 billion. The price of MATIC dropped, not because money left the company. TVL is now worth 1.8 billion tokens, which is 38.1% more than it was. Aave, Uniswap, and SushiSwap, on the other hand, saw a 13% to 25% drop in TVL. Quickswap dropped by 35%, which is a big deal.
Every day, $1.8 million changes hands on the Polygon NFT market, which is the same as before. This is a small drop of 5.7%. It’s clear that fans are still interested because the number of NFTs sold every day went up by 1.8% to 52,000.
It hit a two-year low of $0.428 on July 5th, and so far it has only gone up by 5% to $0.512. Even so, CoinGecko data shows that trades have dropped by $197 million, or 30%, in the last few days. Since its all-time high of $2.91 in 2021, when the bull run began, it has dropped 82%.
