Polygon ranks third in top DeFi projects by revenue; what this means for MATIC price

Polygon ranks third in top DeFi projects, based on its revenue. Polygon has witnessed a spike in user activity following the FTX exchange crash and bankruptcy. Analysts retain their bullish outlook on MATIC price, the token of the Ethereum-scaling solution. 

Also read: FTX liquidity gap widens to $8 billion, here’s what this means for the future of crypto

MATIC hits key milestone, ranks third in DeFi projects by revenue

MATIC, the native token of the Ethereum-scaling solution Polygon, ranks third in the list of top DeFi projects by revenue. Despite the growth in revenue, Polygon’s DeFi-based projects failed to see an increase in Total Value Locked (TVL). 

DeFi data aggregator DeFiLlama revealed that Polygon network’s TVL has decreased by 1.22% over the past day, and its value is currently at $1.52 billion. Interestingly, there is a spike in user activity in MATIC. 

Since the FTX-exchange crash, user activity on the Polygon blockchain climbed significantly. The news of Polygon’s partnerships with top-tier brands including Nike, Starbucks, Coca-Cola, Meta and Adidas coincides with other key milestones.

The number of active Proof-of-Stake (PoS) chain addresses surged to a four-week high of 575,309 on November 10. This is the third-highest volume of activity thus far in 2022. The highest address activity was recorded on October 13, when 782,186 addresses were active on the Polygon blockchain, based on data from PolygonScan. 

According to crypto data aggregator CryptoQuant, MATIC reserves across exchanges have declined. Reduction in reserves of Polygon’s native token on cryptocurrency exchanges reduces the selling pressure on the asset. Supply dynamics of a token directly influence its price, therefore MATIC price is likely to begin its recovery soon. 

Ritesh_Trades, a pseudonymous crypto trader and analyst believes MATIC has bullish potential. MATIC price could make a comeback above the $0.92 level. 

MATICUSDT price chart 

Sam Grant, a technical analyst, believes MATIC price could decline below the $0.87 level, where it is currently trading. If the bullish thesis is invalidated, the asset could nosedive lower. FTX-crash has resulted in a contagion that spread throughout the crypto ecosystem and resulted in a bloodbath in top cryptocurrencies. Therefore MATIC could plummet to the $0.80 level.