Polygon has fallen for the first time in 10 days, even after seeing encouraging metrics on its non-fungible token and decentralized finance ecosystem.
DEX Volume and NFT Sales Rise
Polygon (MATIC) fell to a low of $0.53, after hitting a high of $0.582 last week. It remains 60% above its low this month, where the countdown MATIC’s transition to POL continues on September 4.
Polygon’s retreat came after developers regained control of its X account following a recent hacking incident.
Third-party data shows that Polygon’s ecosystem is performing well. According to CryptoSlamWeekly NFT sales soared 111% to over $12.7 million. Buyers jumped 35% to 88,000, while sellers rose to 25,000.
Polygon handled 356,700 transactions, while transaction volume fell 12% to $9.2 million. It was the fourth-largest player in the NFT market after Ethereum (ETH), Solana (SOL), and Bitcoin (BTC).
Polygon also performed well in the decentralized exchange industry, with its volume increasing by 7.32% to $770 million. It was the seventh largest player behind the likes of Ethereum, Solana, and Tron. Some of the most active decentralized exchange networks in the ecosystem were Uniswap, Quickswap, Woofi, Dodo, and Retro.
Additionally, the total value of Polygon locked in the DeFi ecosystem has increased by more than 10% in the past seven days. $951 million.
However, the network is seeing significant competition in the second layer industry from the likes of Arbitrum (ARB) and Base, which have raised over $2.82 billion and $1.6 billion in assets. Arbitrum has also become one of the most active DEX networks, handling over $3.7 billion in the past seven days.
The next evolution in the Polygon ecosystem will be the transition from MATIC to POL, which will introduce new capabilities to the network. It will be used to provide services to any chain on the Polygon network, including AggLayer.
It will also be the native gas token and staking token for Polygon’s Proof-of-Stake network. Polygon may see more volatility towards the launch of POL.
Polygon remains above the 50 EMA.
Technically, Polygon has crossed the 50-day moving average and is hovering around the 23.6% Fibonacci retracement point.
Earlier, it failed to move above that correction point in July this year.
The token has since formed a bearish candlestick pattern, indicating a potential pullback, possibly to the 50 EMA level at $0.493.