Polygon records 3X growth in this area; still, MATIC faces challenges
In its latest report, Polygon [MATIC] claimed to have recorded remarkable growth in the Decentralized Applications (dApps) arena.
According to the third quarter assessment released on 7 October, dApps built on the Polygon chain stood at 53,000. This number represented a 60% increase from Q2 and a 3x growth from March 2022.
While the Web 3.0 project celebrated landmarks, other aspects did not fare well. For example, there was a 10% quarter-on-quarter (QoQ) decline in transactions on the Polygon chain.
This decline led to a loss of $256 million in transactions, affecting the overall network revenue. Furthermore, as per additional data from the report, the network revenue fell by 26% to $14.9 million.
However, Polygon alone cannot be blamed for the above-mentioned decline and losses. Considering that most of Q3 was in a “slump mode,” these declines couldn’t have been avoided. However, the growth on the dApps front led to an uptick for MATIC in the last 24 hours.
But at press time, MATIC was trading at $0.82— a 1.26% drop from its value on 7 October. Hence, could it be that the possibilities of an upward trend were now down the drain?
Here’s AMBCrypto’s Price Prediction for MATIC for 2022-25
A look at the 24-hour trading volume pointed towards a decrease. Furthermore, according to data analytics platform Santiment, the ERC-20 token dipped 6.86%, with its volume at $271.58 million.
Source: Santiment
Additionally, there was more downturn for MATIC apart from the volume. Santiment also showed that the one-day circulation also witnessed a drop.
Despite the number being as high as 117.36 million on 3 October, the circulation was down to 869,000, at the time of this writing. There was little to no change in the trend for its active
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