- Polygon DEX volumes grew significantly over the last few days.
- Development activity on Polygon continued to decline.
Polygon’s [MATIC] price grew significantly over the last few days as the sentiment of the overall market grew bullish. The popularity of DEXes(Decentralized Exchanges) on the Polygon network could further aid MATIC’s price movement.
DEX volumes on the rise
According to recent data, Polygon’s Proof-of-Stake (PoS) network has recently achieved its highest daily DEX volume since May 2022, totaling $721 million.
This surge in trading activity signals a heightened utilization of Polygon’s decentralized exchange platforms, showcasing increased user engagement and confidence in the network’s capabilities.
The higher DEX volume not only amplifies the network’s overall vibrancy but also contributes to increased liquidity, making trading more efficient and attractive for users.
Furthermore, a substantial increase in trading volume can attract more projects and developers to build on the Polygon network, given its demonstrated capacity to handle significant transaction volumes. This influx of projects enhances the network’s ecosystem, fostering innovation and diversification within the decentralized finance (DeFi) space.
Additionally, the positive market sentiment generated by such significant trading activity can attract more users and investors to explore Polygon, potentially expanding its user base.
Source: X
Over the last month, the number of active users on the Polygon network had grown by 69.0%. The revenue generated by the network had also grown by 152% during this period.
The additional revenue generated could also facilitate ongoing network development, improvements, and innovations, ensuring a sustained positive trajectory for Polygon.
Source: token terminal
Declining development activity
However, the development activity on the network declined. Core developers on the network declined by 21% in the last month.
A decrease in the number of core developers suggests a potential shortage of skilled individuals working on the network’s infrastructure. This could result in slower responses to emerging issues, delayed implementation of updates, and a potential lack of innovation, hindering the network’s ability to stay competitive in a rapidly evolving blockchain landscape.
Moreover, the code commits being made on the network also fell by 50%. The substantial drop in code commits signifies a slowdown in the introduction of new features, optimizations, and bug fixes.
Realistic or not, here’s MATIC’s market cap in BTC’s terms
A stagnant development pace may lead to a less dynamic and evolving ecosystem, potentially causing users and developers to explore alternative platforms that offer more frequent updates and improvements.
At press time MATIC was trading at $1.135 and its price had grown by 5.33% in the last 24 hours.
Source: Santiment
