Polygon (MATIC), a Layer 2 (L2), blockchain network, experienced remarkable growth in the third quarter of 2023. According to a report According to Messari, the platform has seen a significant increase in non-fungible token (NFT) sales, successful network upgrades, and the activation of a new token.
Polygon NFT Sales Skyrocket
According to the report, in Q3 2023, Polygon saw a staggering 131% quarter-over-quarter increase in weekly traffic. NFT sales volume, reaching an impressive sum of $20 million. This growth is primarily attributed to the success of DraftKings’ Reignmaker NFT collection, which became the network’s first collection.
The collection included officially licensed cards from renowned sports organizations such as the National Football League Players Association (NFLPA), the Professional Golfers’ Association of America (PGA TOUR), and the Ultimate Fighting Championship (UFC). Additionally, in the third quarter, Polygon achieved significant milestones in terms of technological advancements.
Additionally, Polygon has enabled the POL token on its mainnet during the third quarter of 2023. POL serves as an upgrade to the existing MATIC token and provides holders with the ability to contribute to network security on various chains within the Polygon ecosystem via a re- native staking.
The token features an inflationary model with an annual issuance rate subject to community governance, which the report says improves the overall security and decentralization of the platform.
Daily rise in active addresses fueled by DeFi dominance
During the third quarter, Polygon saw quarterly growth of 1.4% in daily active addresses, reaching an impressive 364,000. The decentralized finance (DeFi) sector accounted for the majority of active addresses on the network, demonstrating the strength and popularity of the platform in the field of decentralized finance.
Additionally, Polygon Labs unveiled Polygon 2.0, a comprehensive upgrade roadmap aimed at unifying all Polygon protocols and blockchains using ZK technology. This initiative aims to make Polygon the “value layer of the Internet” and introduces significant updates to protocol architecture, tokenomics and governance.
One of the major upgrades includes transitioning the network to a zkEVM Validium network, ensuring enhanced security while sharing the same level of robustness as Ethereum (ETH).
Additionally, according to Token Terminal dataPolygon showed positive momentum in terms of price performance, network fees, and circulating market capitalization.
The native token of the network, MATICsaw an increase of 3.95% in the last 24 hours, trading at $0.6556, reflecting positive investor sentiment.
Over the past 30 days, the coin has seen a notable increase of 13.01%, signaling a potential recovery from previous market downturns.
However, six-month data shows a decrease of 34.97%, indicating the impact of market volatility on the long-term value of the token.
Polygon’s outstanding market capitalization currently stands at $6.00 billion, an increase of 15.36%. However, the fully diluted market capitalization of $6.49 billion, which takes into account the total token supply, increased by 12.79%.
The network’s fees over the past 30 days totaled $1.21 million, a slight decrease of 8.57%. However, on an annualized basis, fees reached $14.68 million, a downward trend of 20.24%.
Featured image from Shutterstock, chart from TradingView.com