• The recent bear market has caused MATIC to shed more than $1 billion in market cap.
• On-chain data shows that the GameFi scene on Polygon is growing in importance and accounts for 32% of fees spent, 35% of active addresses using the network, and 23% of transactions.
• Despite this growth, DeFi activity on Polygon has been dwindling with major protocols like AAVE experiencing a 3-8% decrease in their TVL.
MATIC Price Drops Amid Bear Market
Data by cryptocurrency tracker CoinGecko shows that the MATIC token is flashing red in almost all time frames with the monthly being an exception with an 11% gain. Since February 23, the token has shed more than $1 billion in market cap and trade volumes have been hovering around the $500-600 million range.
On-Chain Data Shows Growing GameFi Scene
A cryptanalyst on Twitter recently shared a thread about Polygon’s current state which revealed that GameFi has been growing in importance for the ecosystem. BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? 570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now! This is supported by dAppRadar showing that across all gaming-related protocols on-chain, the majority experienced significant increases on unique active wallets with the top 10 gaming dApps experiencing an average gain of 17%.
DeFi Activity Slowing Down For Polygon
Long term growth of the ecosystem’s DeFi scene has been dwindling after hitting its peak back in 2021. Total value locked on-chain has increased by 0.2%, but this barely masks the massive losses protocols have been experiencing with major protocols on Polygon like AAVE suffering a 3-8% decrease in their TVL despite GameFi’s recent gains.
Concerns Over Long Term Growth Of Ecosystem’s DeFi Scene
The data presented raises concerns over long term growth of Polygon’s DeFI scene as total value locked appears to be slowing down despite Gamefi’s recent gains making it one of the most important activities on the blockchain platform today.
Conclusion
In conclusion, while GameFI activity is growing on Polygon there are also concerns over long term DeFI growth due to losses experienced by major protocols like AAVE as well as a 0.20 increase in total value locked being masked by massive losses overall. As such, it remains to be seen whether or not DeFI can make a comeback or if Matics’ price drops will continue amid bearish markets