Polygon (MATIC), experienced a notable increase in stablecoin market value. How has this affected other metrics and the overall trend of MATIC? Here’s the report from an analytics firm!
When examining the Polygon stablecoin market value metric on DefiLlama, interesting trends emerge. The data shows a significant increase in the market value of stablecoins on the network, indicating the highest volume observed in the last six months. At the time of writing, the stablecoin market value was around $1.4 billion. A more detailed analysis of the graph shows that the market value began a steady rise around December 14, climbing over $1.2 billion by December 31. However, the increase became more pronounced at the beginning of February.
The increase in stablecoin market value serves as an indicator of increased transaction activity on the network. The assessment of Polygon’s Total Value Locked (TVL) showed a lack of significant trends in the last few weeks. At the time of writing, the TVL was approximately $817 million. Since dropping below the $1 billion range in May 2023, it has struggled to regain that level.
Transaction Volume Declines in MATIC
According to analyses of transaction volume, there was a decline after exceeding $200 million in January and reaching over $300 million. The graph shows a downturn starting towards the end of January, with a further decrease in February. Additionally, the volume was around $66.5 million at the time. This indicates that despite the upward movement in stablecoin market value, other key measurements have not yet reflected a significant impact.
While the Polygon stablecoin market value is experiencing a consistent upward trend, the opposite was observed for its native token, MATIC. Analysis of the daily time frame graph showed a 1% decrease over the last three days. The price drop caused a further decline from the neutral line in the Relative Strength Index (RSI).
