Polygon’s Stablecoin Market Cap Hits $1.4B Amid MATIC Declines
Polygon Stablecoin Market Rises: Implications for MATIC
In recent weeks, there has been a lot of movement in the Polygon ecosystem. A notable development is the rise in market capitalization of stablecoins. What does this mean for MATIC, the native token of Polygon?
Rise in Stablecoin Market Capitalization
An analysis of the stablecoin market capitalization on Polygon, based on data from DefiLlama, reveals interesting trends. The chart shows a clear increase in the market capitalization of stablecoins in the network, the highest value observed in the last six months. At the time of publication, the market capitalization of stablecoins was about $1.4 billion.
Further analysis of the chart shows that the market capitalization began to steadily increase from December 14. By December 31, it had risen from about $1.1 billion to over $1.2 billion. However, the increase became even more pronounced in early February, leading to the current state. An increase in the market capitalization of stablecoins suggests increased transaction activity on the network.
TVL and Volume Yet to Feel the Impact
The evaluation of Polygon’s Total Value Locked (TVL) by AMBCrypto shows no significant trends in recent weeks. At the time of publication, the TVL was about $817 million. Since it fell below the $1 billion mark in May 2023, it has struggled to reach this level again.
The analysis of trading volume shows a decline after it exceeded $200 million in January and reached over $300 million. The chart shows a drop at the end of January, followed by another drop in February. At the time of publication, the volume was about $66.5 million. This suggests that despite the upward trend in the market capitalization of stablecoins, other key metrics are yet to show any significant impact.
MATIC Continues to See Declines
While the market capitalization of stablecoins in Polygon shows a steady upward trend, the opposite has been observed for the native token, MATIC. An analysis of the daily chart showed a decline of 1% each in the last three days. At the time of publication, MATIC was trading at about $0.77. The price decline has led it to further deviate from the neutral line on its Relative Strength Index (RSI).
DefiLlama, TradingView, AMBCrypto