How Polygon’s DeFi space is fueling MATIC’s uptrend
The crypto community is ecstatic about the long-awaited release of zkEVM. Polygon [MATIC] recently announced that the zkEVM mainnet will go live on 27 March 2023. Only five weeks ahead of Polygon zkEVM’s mainnet launch, the network’s DeFi ecosystem was witnessing growth. Sandeep Nailwal, co-founder of Polygon, posted an update regarding Gains Network [GNS].
Gains Network is a DeFi ecosystem of products on Polygon and Arbitrum. The network allows for low trading fees and a wide range of leverage, helping Polygon increase its offerings.
Sandeep, in his tweet, congratulated Gains Network for its success as its trade volume reached nearly $25 billion. Dune’s data also revealed that Gain on Polygon registered a considerable increase in its daily users over the past few months.
Polygon’s DeFi space is on fire!
Apart from Gain Network’s statistics, the blockchain’s DeFi ecosystem was growing, with several new partnerships and integration. The latest integration was with Arkreen Network, a data network for distributed energy resources (DERs) to boost a Net Zero future. With the new integration, Arkreen’s first DApp, AREC, will be available on Polygon.
Moreover, a few days ago, Polygon DeFi also announced a partnership with DeVoI Network, which is an AMM option protocol for on-chain crypto options trading. As per the official tweet, DeVoI plans to share an informed, education-first perspective about DeFi, counterparty risk, and on-chain transparency for those stepping into the space.
MATIC responded accordingly
As these developments happened, MATIC’s price responded positively, with its price increasing by over 61% in the month. According to CoinMarketCap, MATIC’s value registered an uptick of nearly 24% in the last seven days, and at press time, it was trading at $1.52 with a market capitalization of more than $13.2 billion.
Santiment’s data also revealed a few factors that were working in MATIC’s favor. For instance, MATIC’s MVRV Ratio went up considerably, which looked bullish. Moreover, the daily active addresses also registered an uptick, reflecting more users in the network. MATIC’s weighted sentiment also remained towards the upper side.
As per CryptoQuant, MATIC’s exchange reserve was decreasing, indicating less selling pressure. However, the total number of transactions and transfer volume was declining, which can be troublesome.
