Polygon ranks third in top DeFi projects, based on its revenue. Polygon has witnessed a spike in user activity following the FTX exchange crash and bankruptcy. Analysts retain their bullish outlook on MATIC price, the token of the Ethereum-scaling solution.
DeFi data aggregator DeFiLlama revealed that Polygon network’s TVL has decreased by 1.22% over the past day, and its value is currently at $1.52 billion. Interestingly, there is a spike in user activity in MATIC.
Since the FTX-exchange crash, user activity on the Polygon blockchain climbed significantly. The news of Polygon’s partnerships with top-tier brands including Nike, Starbucks, Coca-Cola, Meta and Adidas coincides with other key milestones.
The number of active Proof-of-Stake (PoS) chain addresses surged to a four-week high of 575,309 on November 10. This is the third-highest volume of activity thus far in 2022. The highest address activity was recorded on October 13, when 782,186 addresses were active on the Polygon blockchain, based on data from PolygonScan.
According to crypto data aggregator CryptoQuant, MATIC reserves across exchanges have declined. Reduction in reserves of Polygon’s native token on cryptocurrency exchanges reduces the selling pressure on the asset. Supply dynamics of a token directly influence its price, therefore MATIC price is likely to begin its recovery soon.
Ritesh_Trades, a pseudonymous crypto trader and analyst believes MATIC has bullish potential. MATIC price could make a comeback above the $0.92 level.