- Polygon’s TVL fell more than 3% in the past 24 hours.
- While the stats were bearish, MATIC’s long/short ratio increased, indicating a trend reversal.
Polygons [MATIC] The DeFi ecosystem has been growing and evolving for several months now. According to Polygon’s latest tweet, there are more than $5 million in assets on the network across more than 20 tokens and coins.
DeFi on Polygon zkEVM is growing. And there’s more to come. More transactions, more users and more liquidity
But for a full overview of DeFi on Polygon #zkEVM now follow the 🐇
✈️High level view
🔮Oracles
🌉 Bridging
📊DEXs/Loans/LPs
🗓️ What’s coming— Polygon (@0xPolygon) May 5, 2023
Is your wallet green? Check the Polygon profit calculator
A closer look at Polygon’s DeFi performance
Polygon’s tweet also revealed that 90% of wallet addresses use other L2s, and less than 15% of those wallets are new.
Since DeFi performance is the topic, a look at Polygon‘s TVL was needed.
While the chart has remained fairly consistent over the past few months, it registered a decline of more than 3% in the past 24 hours.
Source: DeFiLlama
Well, not only did the blockchain’s TVL drop, but Token Terminal’s data pointed to a few other fronts as well.
As the chart shows, Polygon’s fees and revenues were up at the end of April. However, the uptrend was short-lived as the second month of Q2 2023 showed a decline.
Source: Token Terminal
zkEVM’s TVL behaves differently
While Polygon’s TVL plateaued in recent months, zkEVM, on the other hand, behaved differently. DeFiLlama’s chart showed that zkEVM’s TVL has increased significantly since its inception.
At the time of writing, the TVL stood at $2,541,403.
Source: DeFiLlama
While zkEVM’s TVL went up, the key stats didn’t. For example, Polygon scanThe graph of zkEVM showed that the daily gas consumption of zkEVM decreased sharply.
In addition, the number of daily transactions also dropped sharply, indicating less use of zkEVM. Nevertheless, zkEVM’s unique addresses continued to rise, reflecting its high adoption.
Source: Polygon scan
MATIC is still slow
In addition, dynamics in terms of network activity were high, but MATIC’s price action remained sluggish over the past week. According to CoinMarketCapthe price of MATIC is down more than 2% in the past seven days.
At the time of writing, it was trading at $0.9802 with a market cap of over $9 billion.
from CryptoQuant facts suggested that the hardships could continue as Polygon’s exchange reserve increased. Negative sentiment around MATIC also spiked, indicating less confidence in the token.
Source: Sentiment
Realistic or not, here it is MATIC market cap in BTC‘s conditions
Nevertheless, a few stats looked optimistic. For example, MATICThe company’s funding rate was high, indicating increased demand in the derivatives market.
The token’s MVRV ratio also recovered, which was a positive sign overall. Mint glass also pointed out a bullish indicator for MATIC.
According to the data, MATIC’s long/short ratio registered an uptick. This gave hope for a trend reversal – a high ratio indicates bullish market sentiment.
Source: Coinglass
