Polygon (MATIC) Sees More Active Addresses and NFT Volume in Stellar Quarter

The Polygon network saw sustained growth in the third quarter, maintaining its place in a highly competitive market for dApp-compatible blockchains.

During the third quarter of the year, the Polygon network improved on several key metrics. There was a notable increase in the number of active addresses on the network, with an even more impressive surge in NFT trading volume.

Polygon is an Ethereum-based layer-2 solution that allows users to enjoy low fees and faster transactions. Its native currency MATIC ranks as the 12th largest crypto asset by market capitalization. In the third quarter, Polygon announced and implemented a range of upgrades to enhance the project’s tokenomics and make the network more robust.

Amid these major upgrades, a recent report from Messari shows that the Polygon ecosystem maintained relative stability and even saw an uptick in other areas.

For instance, the number of daily active addresses increased by 1.6%, growing from 359,000 addresses by the end of Q2 to 364,000 at the end of the third quarter.

The network also experienced a higher retention rate compared to the previous quarter. The average daily number of returning addresses increased by 4.8%, jumping from 273,400 to over 286,000 addresses.

Another notable metric in the third quarter is the increased supply of MATIC coins staked. The data reveals that 36.3% of the total supply of MATIC is staked, a mild 0.9% increase from the past quarter. The percentage of staked supply has increased by over 10% compared to last year’s third quarter, when only 32.6% of MATIC’s supply was staked.

NFT and DeFi Volume Remains Steady 

The NFT and DeFi sector constitutes major components of a thriving blockchain ecosystem, and Polygon is not left behind. In fact, the network saw an increase in NFT trading volume, according to Messari’s data.

Daily NFT sales volume increased by over 50%, from $2 million to $3 million, largely buoyed by the launch of the DraftKings Reignmaker NFT collection. In turn, weekly volume rose as high as $20 million, representing a 131% rise compared to the same quarter last year.

Meanwhile, although the total value locked across Polygon-based DeFi protocols dropped by $200 million within the quarter, the blockchain’s ecosystem remained firmly capitalized. Over $900 million in assets are still locked on Polygon DeFi apps, with the sector responsible for 57% of daily active addresses on the network.