Can Polygon’s growing ecosystem keep MATIC holders warm this crypto winter?

• Polygon witnesses important progress in its Defi and NFT house
• Nonetheless, the sentiment in opposition to Polygon declined

In accordance with new data posted by Polygon, the layer 2 resolution was noticed to be bettering its presence within the DeFi house. This was indicated by the variety of liquid staking derivates on the Polygon community which grew considerably over the past yr.

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The DeFi angle

As per the info offered by pledge, the variety of liquid stakers on the community witnessed a large surge over the previous few months. At press time, the variety of stakers on the community stood at 11,360 and the 99.6 million value of MATIC was staked.

Regardless of this progress in liquid stakers, Polygon’s TVL declined in December because it fell from $1.06 billion to $998.07 million.

Supply: pledge

One other contributor to the expansion of Polygon’s ecosystem was the rising NFT market on Polygon’s community.

Based mostly on information offered by The Block, it was noticed that Polygon’s market share by NFT buying and selling quantity rose to 9.6%, up from 0.5% simply two weeks in the past. The ascent of Trump NFTs and the super flood of latest contributors that injected liquidity into the Polygon NFT market primarily fueled this resurgence.

Supply: THE BLOCK

What concerning the public sentiment?

Regardless of the surge in curiosity in Polygon’s NFTs, there was a decline noticed in Polygon’s exercise on the social entrance.

As per LunarCrush, the variety of social mentions and engagements for Polygon declined materially over the previous week. Polygon’s social mentions fell by 19.2% and its engagements declined by 25.9% throughout the identical interval.

The sentiment for Polygon was additionally unfavourable throughout this timeframe. The declining weighted sentiment indicated this. A decline in weighted sentiment steered that the crypto neighborhood had extra unfavourable than optimistic issues to say about Polygon.

Supply: Santiment

This decline in sentiment might be one of many explanation why the variety of transactions on Polygon continued to say no.

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Knowledge from Dune Analytics confirmed that the variety of transactions and customers on the community decreased considerably. The variety of transactions on the community fell from 81.01 million to $7.05 million. The variety of customers on the community fell from 6.36 million to 4.85 million.

Supply: Dune Analytics

On the time of writing, Polygon was buying and selling at $0.800 and its value appreciated by 2.41% within the final 24 hours.