Polygon price retreats as NFT sales, DEX volume rises

Polygon pulled out for the primary time in ten days, even after seeing encouraging numbers on its non-fungible token and decentralized finance ecosystem.

DEX quantity and NFT gross sales are rising

Polygon (MATIC) retreated to a low of $0.53, down from final week’s excessive of $0.582. It stays 60% increased than this month’s low countdown The transition from MATIC to POL on September 4 will proceed.

Polygon’s withdrawal occurred after the builders regained management of their X account following a latest hacking incident.

Third-party knowledge exhibits that Polygon’s ecosystem is doing nicely. In accordance with CryptoSlamweekly NFT gross sales elevated by 111% to over $12.7 million. The variety of consumers elevated by 35% to 88,000, whereas the variety of sellers rose to 25,000.

Polygon processed 356,700 transactions, whereas laundry quantity fell 12% to $9.2 million. It was the fourth largest participant within the NFT market, after Ethereum (ETH), Solana (SOL) and Bitcoin (BTC).

Polygon has additionally achieved nicely within the DEX trade, the place quantity rose 7.32% to $770 million. It was the seventh largest participant, after Ethereum, Solana and Tron. A few of the most energetic DEX networks within the ecosystem have been Uniswap, Quickswap, Woofi, Dodo, and Retro.

Moreover, Polygon’s whole worth locked within the DeFi ecosystem has elevated by greater than 10% over the previous seven days to $951 million.

Nonetheless, the community faces vital competitors within the layer 2 trade from corporations like Arbitrum (ARB) and Base, which have amassed greater than $2.82 billion and $1.6 billion in belongings. Arbitrum has additionally develop into one of the energetic DEX networks, processing greater than $3.7 billion within the final seven days.

The subsequent growth in Polygon’s ecosystem would be the transition from MATIC to POL, which can introduce new capabilities to the community. It will likely be used to supply providers to each chain within the Polygon community, together with AggLayer.

It’s going to even be the native fuel and staking token for Polygon’s proof-of-stake community. Polygon may see extra volatility heading into the POL launch.

Polygon stays above 50EMA

Technically, Polygon has crossed the 50-day shifting common and is hovering on the 23.6% Fibonacci Retracement level.

Beforehand, it failed to interrupt above that retracement level in July this yr.

The token has since shaped a bearish engulfing candlestick sample, indicating a possible pullback, probably to the 50 EMA degree at $0.493.