Polygon Sees an Increase in Stablecoins
The Polygon ecosystem has been experiencing significant inflows in recent weeks, particularly in its stablecoin market cap.
An examination of the Polygon stablecoin market cap metric on DefiLlama revealed intriguing trends.
The chart displayed a notable rise in the stablecoin market cap on the network, marking the highest volume observed in the last six months.
At the time of this writing, the stablecoin market cap was around $1.4 billion.
Further analysis of the chart showed that the market cap began a steady rise around the 14th of December, increasing from around $1.1 billion to over $1.2 billion by the end of December.
The rise became more pronounced at the beginning of February, reaching its press time level.
An increase in the stablecoin market cap serves as an indication of increased transactional activity on the network.
TVL and Volume Yet to Feel the Impact
AMBCrypto’s evaluation of Polygon’s Total Value Locked (TVL) showed a lack of significant trends in the past few weeks, with the TVL around $817 million at the time of this writing.
Since dropping below the $1 billion range in May 2023, it has struggled to reclaim that level.
AMBCrypto’s analysis of the trading volume showed a decline, dropping from over $200 million to around $66.5 million at the time of this writing.
This suggests that, despite the upward movement in the stablecoin market cap, other crucial metrics are yet to reflect a notable impact.
MATIC Sees Consecutive Declines
While the Polygon stablecoin market cap has experienced consistent upward trends, the native token MATIC has observed consecutive declines.
An analysis of the daily timeframe chart showed a decline of 1% each over the past three days, with MATIC trading at around $0.77 at the time of this writing.
The price drop has caused it to fall further from the neutral line on its Relative Strength Index (RSI).
