Polygon [MATIC] Despite Growing User Base, Key Metrics See concerning Decline

Despite the increasing popularity of other cryptocurrencies and blockchain networks, Polygon [MATIC] continued to attract a growing number of users

output: Despite the increasing popularity of other cryptocurrencies and blockchain networks, Polygon [MATIC] continued to attract a growing number of users to its platform.

output: Data from token terminal indicated that the number of users on the Polygon network were close to 10 million at the time of writing.output: The surge in activity on the network was driven by the popularity of the Polygon ecosystem.output: Despite the rising activity on the network, the state of DeFi on the network wasn’t as positive.output: AMBCrypto’s analysis of Artemis’ data revealed that the DEX (Decentralized Exchange Volumes) on the network had fallen significantly over the last few days.output: Adding to that, the TVL (Total Value Locked) on the Polygon network also fell significantly during this period.output: According to the data, the daily TVL collected from Polygon fell from $1 billion to $942 million over the last few days.output: Due to these factors, the fees generated by the network have fallen materially.output: Coupled with that the revenue generated by the network declined significantly.output: If these problems continue, it would be hard for Polygon to be able to scale and have funds to make improvements to the network.output: The number of code commits occurring on the Polygon network had declined materially over the past month.output: Additionally, the number of core developers on the network had also fallen significantly.output: If this trend continues, the number of updates and upgrades occurring on the network could slow down.output: New updates and upgrades help improve sentiment around the network.output: They also help attract new users to network and retain old ones.output: The price of MATIC wasn’t doing too well either.output: At the time of writing, the price of MATIC was $0.7062 reflecting a decline of 1.82% over the past month.output: The network growth of the token had also plummeted during this period, indicating a decline in interest from new addresses.output: Moreover, the transaction volume around Polygon had also fallen significantly implying that the frequency with which MATIC was being traded at, had fallen as well.