Polygon’s Dominance: Q3 Sees Soaring NFT Trades and Resilient DeFi, Reinforcing Network Growth

• Polygon network displays consistent growth in the third quarter, boasting increased active addresses and significant surges in NFT trading volume.
• The network’s upgrades and improvements, as noted by Messari’s report, indicate enhanced stability, an upsurge in active addresses, and notable stake increases for the native currency, MATIC.

The Polygon network has continued its upward trajectory in the third quarter, showcasing a noteworthy surge in key metrics and reinforcing its position among dApp-compatible blockchains in a competitive market.

A standout improvement has been witnessed in the network’s active addresses, alongside an impressive surge in Non-Fungible tokens (NFT) trading volume. These indicators demonstrate the sustained growth and adoption of Polygon, a prominent Ethereum-based layer-2 solution renowned for its low fees and faster transactions.

During this quarter, Polygon unveiled several upgrades to fortify its tokenomics and network robustness. The enhancements were aimed at further enhancing the user experience and cementing its status as a robust layer-2 solution.

According to a recent report from Messari, the Polygon ecosystem exhibited sustained stability and remarkable growth in various areas. Notably, there was a 1.6% increase in daily active addresses, surging from 359,000 in the previous quarter to 364,000 at the end of Q3. Furthermore, the network showcased a higher retention rate, with returning addresses rising by 4.8% from 273,400 to over 286,000.

An intriguing aspect in the third quarter was the increased supply of staked MATIC coins. Data indicates a mild 0.9% rise in the staked supply, constituting 36.3% of the total MATIC supply. This growth marks a significant increase from last year, showing a jump of over 10% in the staked supply compared to the previous year’s third quarter.

NFT and DeFi Sector Performance

NFT and DeFi are pivotal components of any thriving blockchain ecosystem, and Polygon has excelled in these areas. The Messari report highlighted a surge in NFT trading volume on the network, marking a 50% increase in daily NFT sales from $2 million to $3 million. The launch of the DraftKings Reignmaker NFT collection played a significant role in bolstering this surge, contributing to a 131% rise in weekly volume compared to the same quarter last year.

Despite a drop of $200 million in the total value locked across Polygon-based DeFi protocols, the ecosystem remains robust, with over $900 million in assets locked in Polygon DeFi apps. This sector represents 57% of daily active addresses on the network, showcasing the network’s resilience in the DeFi landscape.

As the report suggests, the Polygon network’s sustained growth in active addresses, NFT trading volumes, and the consistent resilience of its DeFi sector paint a picture of a network continually evolving and solidifying its place in the competitive blockchain market.