"Polygon Surpasses Ethereum in Daily Active Addresses
Polygon has surpassed Ethereum in daily active addresses due to its partnerships, NFT migrations, and well-performing dApps, but faces challenges in the DeFi space with declining DEX volume and a drop in the price of its native token, MATIC, with a lack of interest from new addresses.
Polygon, a layer 2 solution in the cryptocurrency world, has recently emerged as a prominent player in the space, with numerous partnerships and an influx of NFT migrations contributing to its competitiveness with other layer 2 solutions. According to Token Terminal, Polygon has even surpassed Ethereum in daily active addresses, with 399,950 addresses in the last 24 hours compared to 376,350 on Ethereum.
The increase in activity on Polygon can be attributed to several factors, including the performance of its dApps. For example, well-known dApps like Planet IX have seen a significant boost in both active addresses and volume, with the latter rising by 15.29% in the past month. The NFT market on Polygon has also experienced a surge in interest, particularly with the migration of y00ts NFT. After the transfer to the Polygon network, the y00ts NFT saw a significant increase in volume and the number of holders. Since the migration started on March 28th, y00ts' secondary sales have generated $4.6 million in volume from 1,043 sales, averaging $4,461 per sale.
However, Polygon has faced some challenges in the DeFi space, particularly in its DEX volume. Compared to other layer 2 solutions like Arbitrum, Polygon's DEX volume has experienced a significant decline, which has had a ripple effect on the total value locked (TVL) on the network, also seeing a decrease. The native token of Polygon, MATIC, has also faced some setbacks, with Santiment's data showing a decline in the overall transaction count on the network and a drop in the price of MATIC from $1.16 to $1.096.
Despite the price correction, there has been a lack of interest in MATIC among new addresses, as evidenced by the declining network growth. It remains to be seen whether Polygon's surge in daily activity will have a positive impact on its price in the future.
In conclusion, Polygon has made a significant impact in the cryptocurrency world with its partnerships and NFT migrations, surpassing Ethereum in daily active addresses. However, it has faced challenges in the DeFi space and with its native token, MATIC. The future will determine the long-term impact of Polygon's surge in daily activity on its price.
