Polygon, a decentralised Ethereum scaling platform, noticed vital traction in 2022. This was the case, particularly forward of the much-anticipated Ethereum Merge. The truth is, dominant consumers too have clamped down on the native token, sensing alternative.
Nevertheless, the altcoin lately noticed some bearish indicators to offset the aforementioned (bullish) situation(s).
Excessive (tides) to low
MATIC, at press time, was buying and selling simply above the $0.92-mark on CoinMarketCap, meaning to cross the $1 mark. Nevertheless, now the objective may see some injury because the community misplaced some elementary traction too.
Dragoma, an exercise developed-in GameFi+SocialFi primarily based on Polygon, took a serious life-threatening hit, as reported by safety specialists. PeckShield highlighted a rug pull growth, following which, DMA dropped by greater than 99%. In doing so, DMA plummeted from $1.8 to $0.004.
To make issues worse, the Dragoma website was down, with the social media channel deleted at press time. Even the (stolen) funds had been deposited to exchanges.
Wait a minute… right here comes the climax
Sadly, the mentioned horror wasn’t over but given the bearish climax because the mum or dad platform too suffered the identical destiny. Not a hack, however a shedding traction streak.
Herein, Polygon – the main Ethereum (ETH) scaling ecosystem – for the very first time, misplaced its place to Optimism. Ergo, one would possibly argue that one side stays clear – The latter firmly believes in ‘quality over quantity.’ Right here’s why –
The Optimism (OP) community with its 61 merchandise surpassed $2.38 billion in complete worth locked (TVL). Quite the opposite, the previous with 282 protocols managed solely $1.83 billion, regardless of its measurement.
The truth is, Ethereum’s L2s ecosystem, regardless of a shaky begin this 12 months, managed to register an enormous uptick within the graph under. Optimism alone noticed positive factors of over 700% when it comes to TVL – One thing that Polygon couldn’t actually match.
Transferring on to on-chain indicators, buying and selling quantity for MATIC declined under the 270M mark on Santiment. A regarding fall; from creating 2.7B in quantity to its present image.
Not simply the buying and selling quantity, however even the social quantity reiterated the identical narrative. This can be one of many fundamental the explanation why the flagship token may barely see any value surge.
However, may the community bounce again? Nicely, YES as Polygon’s previous bears witness to the identical. Polygon supporters have uniformly marched alongside the road, whatever the scenario.