Polygon (MATIC) really stands out when it comes to DeFi. It has performed well as a Layer 2 scaling solution for Ethereum and has continued to improve in that regard.
Why did the Polygon developers offer a structure to increase gas charges with millions of users? And can another chain be squeezed in as a result?
Polygon’s network performance is much better than the price action. In fact, MATIC posted an 8% decline yesterday. While the share price has been doing pretty well so far in October, yesterday’s decline canceled out more than 25% growth. At the time of writing, MATIC is trading at $ 1.20.
MATIC price table | Source: Tradingview
Polygon has generated impressive numbers in the DeFi area. It is only 695,000 away from Binance Smart Chain (BSC) wallet addresses.
Total number of polygon wallet addresses | Source: Coin98
However, it won’t be long before Polygon can outperform BSC in terms of total wallet addresses. Currently, Polygon is adding more than 970,000 new addresses every day. On the other hand, BSC is only 172,000 and Ethereum is even below that.
New polygon wallet address | Source: Coin98
The reason why the MATIC price has fallen
Although Polygon added more wallet addresses, BSC still has the highest number of daily active addresses (DAA). The metrics have grown every day and now the DAA has hit an all-time high (ATH) of 1.345 million wallets.
The amazing increase in DAA has also supported daily transactions and as a result BSC has reached 7.8 million transactions per day. These are the highest numbers in more than 5 months.
Polygon’s daily transactions | Source: Coin98
The reason for the MATIC price fell yesterday, however, was the announcement the day before. On October 9th, the Polygon development team increased the minimum gas fee from 1 Gwei to 30 Gwei, as Bitcoin magazine reported.
This change was made to reduce spam trading on the network and investors are reluctant to accept it. Their moods turned negative, the worst since the May crash.
Polygon Investor Psychology | Source: Santiment
It is too early to say that the decision to increase gas tariffs will have a negative impact on MATIC as it has not yet seen any major changes. But if the network’s statistics keep going up, MATIC could go higher too.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to AMBCrypto