Polygon fell back for the first time in 10 days, even after seeing encouraging metrics for its non-fungible token and decentralized finance ecosystem.
DEX volume and NFT sales are on the rise
Polygon (MATIC) retreated to a low of $0.53, down from last week’s high of $0.582. It is still 60% higher than its lowest point this month, as countdown The transition from MATIC to POL continues on September 4.
Polygon’s takedown came after the developers regained control of their X account following a recent hacking incident.
Third-party data shows that the Polygon ecosystem is performing well. According to CryptoSlamWeekly NFT sales increased by 111% to over $12.7 million. The number of buyers increased by 35% to 88,000, while the number of sellers increased to 25,000.
Polygon handled 356,700 transactions, while laundering volume fell 12% to $9.2 million. It was the fourth largest player in the NFT market after Ethereum (Ethnicity), Solana (SUN) and Bitcoin (Bitcoin).
Polygon has also performed well in the DEX industry, where its volume increased by 7.32% to $770 million. It was the seventh largest player after Ethereum, Solana, and Tron. Some of the most active DEX 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 to $951 million.
Still, the network faces substantial competition in the layer-2 industry from the likes of Arbitrum (ARB) and Base, which have amassed over $2.82 billion and $1.6 billion in assets. Arbitrum has also emerged as one of the most active DEX networks, handling over $3.7 billion in the past seven days.
The next development 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 and staking token for the Polygon proof-of-stake network. Polygon could experience further volatility towards the launch of POL.
The polygon remains above the EMA 50
Technically, Polygon has crossed the 50-day moving average and is hovering around the 23.6% Fibonacci retracement point.
It previously failed to break through that retracement point in July this year.
Since then, the token has formed a bearish engulfing candlestick pattern, which points to a possible pullback, possibly to the 50 EMA level at $0.493.
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