Polygon’s trading volume exceeded 4 billion, why didn’t MATIC coin rise?

Polygon’s trading volume exceeded 4 billion, why didn’t MATIC coins rise? Polygon, the Ethereum scaling solution designed to solve the network’s scalability issues, has passed a milestone: reaching 4 billion total transactions. This achievement is particularly impressive considering the network launched just four years ago, in June 2020. In comparison, it took Bitcoin BTC a staggering 15 years to reach 1 billion transactions, highlighting the speed of Polygon’s adoption.

This meteoric growth is more than just a vanity metric. The number of daily active users on the network paints a vivid picture of a thriving ecosystem. Since March 19, Polygon has averaged more than 1 million daily active users for more than 60 consecutive days.

The surge in user activity may be driven by the popularity of decentralized applications (dApps) built on Polygon. Popular names like Matr1x (a mobile-first money-making game) and Galxe (an emerging digital identity network) are attracting users and driving transaction volume.

#However, despite impressive network growth, the price of Polygon’s native token, MATIC, does not reflect the enthusiasm. Over the past year, MATIC has largely remained range-bound between $0.50 and $1, significantly lagging the broader crypto market. This disconnect between network activity and token prices has some people scratching their heads.

Analysts offer some explanations for this price conundrum. As more users flock to Polygon’s dApps, demand for the MATICs needed to interact with them should rise accordingly. This could lead to long-term price appreciation for MATIC. However, others point to the number of tokens in circulation (over 10 billion) as a potential impediment to price increases.

Another factor is competition. While Polygon is the leading Ethereum scaling solution, other blockchains such as Solana have higher transaction volumes (over 290 billion in a similar time frame).

Despite the current price stagnation, experts remain cautiously optimistic about Polygon's future. The network's rapid growth and user adoption are undeniable positives. The team behind Polygon is also actively working on expanding the solution and attracting new dApps to its ecosystem.

If they can successfully navigate the competitive landscape and convert web activity into real value for users, MATIC can finally escape the downward trend and embark on a sustained upward journey.

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