Amid a significant drop in total cryptocurrency trading volume, the Polygon (MATIC) network has not been an exception. The latest crypto market data reveals that MATIC trading volume has plummeted by more than half since February of this year. From reaching a daily traded volume of approximately $774 million in February, the Polygon (MATIC) network recorded a total 24-hour traded volume of around $273 million on Tuesday.
Polygon (MATIC) Network Holds Strong as Ethereum Scaling Solution
Despite the decline in trading volume, the Polygon network remains one of the essential Ethereum scaling solutions. Its staking contract currently holds over 38 percent of the total MATIC supply, amounting to approximately $3.36 billion. As a result, MATIC’s price has surged more than 27 percent year-to-date, with trading hovering around $0.88 on Tuesday.
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Significant Decrease in Daily New Addresses
An on-chain study conducted by Glassnode reveals a notable decrease in the daily creation of addresses on the Polygon network over the past year. Interestingly, the number of new daily addresses on the Polygon network currently stands at approximately 556, a level not seen since early 2021. This decline coincides with the bearish price outlook, despite the anticipated Ethereum layer 2 adoption triggered by the Shanghai upgrade.
Address Distribution and MATIC Holders on Polygon
According to on-chain data provided by Etherscan, the Polygon network currently has a total of 608,638 holders who have executed around 5,992,138 transfers. Of these addresses, 90.2 percent hold less than $1k in MATIC. Approximately 9.5 percent of Polygon (MATIC) addresses hold between $1k and $100k, as reported by Binance-backed Coinmarketcap. A mere 0.2 percent of MATIC addresses hold more than $100k. Interestingly, the number of addresses holding MATIC has increased since June last year, while short-term holders have been on the decline.
