Polygon (MATIC) Retreated for the First Time in 10 Days, Even After Seeing Encouraging Metrics on Its Non-Fungible Token and Decentralized Finance Ecosystem

DEX volume and NFT sales rise

Polygon (MATIC) price pulled back on Monday after last week’s rally. The MATIC token retreated to a low of $0.53, down from last week’s high of $0.582. It remained about 60% above its lowest point this month.

Polygon price recovers after X account hack

Polygon had a difficult start to the second half of the year. On August 10, a hacker stole about $611,000 from Nascent, a decentralized autonomous organization (DAO) on Polygon.

The attacker exploited a vulnerability in Nascent’s NFT leasing protocol and stole the funds, which were later frozen by the Polygon team.

On August 24, another hacking incident was reported on Polygon. This time, the hacker stole X account credentials and used them to mint 800,000 MATIC tokens.

The tokens were later burned by the Polygon team and the X account was fully restored.

MATIC token price reacted positively to the development and started rising. In the past seven days, the token rose by over 20%.

As a result, MATIC price remained substantially higher than its lowest point this year, which was at $0.33. At the current price, the token is valued at over $4.7 billion, making it the 13th biggest cryptocurrency in the world.

Polygon DEX volume and NFT sales rise

Data from third-party firms showed that Polygon’s ecosystem is performing well.

According to CryptoSlam, weekly NFT sales rose by 111% to over $12.7 million. The number of buyers jumped by 35% to 88,000 while sellers rose to 25,000.

Polygon handled 356,700 transactions, while the wash volume fell by 12% to $9.2 million. It was the fourth-biggest player in the NFT market after Ethereum (ETH), Solana (SOL), and Bitcoin (BTC).

Polygon has also done well in the DEX industry, where its volume rose by 7.32% to $770 million. It was the seventh-biggest player after the likes of Ethereum, Solana, and Tron. Some of the most active DEX networks in the ecosystem were Uniswap, Quickswap, Woofi, Dodo, and Retro.

Additionally, Polygon’s total value locked in the DeFi ecosystem has risen by over 10% in the last seven days to $951 million.

Polygon faces stiff competition

Still, the network is seeing substantial competition in the layer-2 industry from the likes of Arbitrum (ARB) and Base, which have accumulated over $2.82 billion and $1.6 billion in assets. Arbitrum has also become one of the most active DEX networks, handling over $3.7 billion in the last seven days.

The next development in Polygon’s ecosystem will be the transition from MATIC to POL, which will introduce new capabilities in the network. It will be used to provide services to any chain in the Polygon network, including AggLayer.

It will also be the native gas and staking token for Polygon’s proof-of-stake network. Polygon could see more volatility towards the POL launch.

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