Polygon (MATIC) Experiences Recovery Challenges Despite Record Growth, Here’s Why

Polygon continues to cement its presence within the DeFi industry. The blockchain appears to fulfill what it misses in the spot market by dominating the decentralized finance marketplace.

Polygon Attracts Everyone

Polygon attained a remarkable milestone this month, hitting more than 19,000 dApps. For now, the DeFi network has more than $3.69bn locks in, with more than 8,000 active teams monthly. Such developments have attracted the attention of market players.

The swift finality and low transaction costs have drawn investors and developers to the chain, and their behavior reflects their loyalty. According to Alchemy data, 65% of the creators deployed solely on Polygon, whereas 35% integrated on Ethereum. Meanwhile, alchemy receives a substantial part of the credit as its deployment in May propelled the development rate higher.

Moreover, the explosion of non-fungible tokens helped Polygon attract more creators. That’s why Polygon recorded a six-fold growth in Dapps since October. Also, the network has observed a higher interest, as far as NFTs are concerned, than last year.

For instance, the total NFTs volume recorded throughout 2021 stood at $295 million, while the past four months had NFTs accumulating more than $236 million.

Though NFT trading and selling volume declined last month, it is now on the recovery path. Nevertheless, Polygon’s decentralized finance space is the only attractive facet of the ecosystem since the price action remains ugly. Hovering near $1.41, MATIC explores its six-month lows, dropping 18.32% within the past one week amid panic sentiment by many investors.

Meanwhile, more than 81.75% of Polygon investors remain out of money. These holders are waiting for the alt price to hit $1.2 so that around 9K traders could escape the bear trap.

The highest impact on MATIC investors would be after the token crosses the $1.2 mark. That is because nearly 4.92 billion Polygon tokens wait for rescue in the $1.2 – $1.7 range. That would save over 70% of traders currently in losses.

Polygon’s price struggle emerges as the broad market sees dominant bearishness. The previous 24 hours saw top cryptocurrencies sliding further. Bitcoin could not climb higher, losing 1.63% over the past day to $38,012. MATIC investors may rely on hope amid such developments.

Editorial credit: Dennis Diatel / shutterstock.com