In its most recent report, Polygon [MATIC] reported tremendous growth in the Decentralized Applications (dApps) space.
According to the third quarter evaluation provided on October 7th, there were 53,000 dApps produced on the Polygon chain. This figure marked a 60% rise over the previous quarter and a threefold increase over March 2022.
In the third quarter, the total number of unique addresses increased by 9% (5.82 million increase).
The network members generated 256 million transactions (10% lower than the previous quarter), producing $4.19 million in network revenue (26% lower than the previous quarter).
The loss in transaction volume, and hence revenue, occurs against the backdrop of a general market downturn, with some rival chains running at even lower utilization levels.
Polygon continues to draw a broad range of new Web3 projects. TagSpace, for example, is leveraging blockchain power for augmented reality, New Canvas is minting NFTs and a social token for its award-winning animated VR series, ITSBLOC is exploring the frontier of play-to-earn games, and Partisia is tackling the challenge of data confidentiality and privacy on public blockchains.
The Downside
While the Web 3.0 project celebrated milestones, other parts fared poorly. Transactions on the Polygon chain, for example, decreased by 10% quarter on quarter (QoQ).
This decrease resulted in a loss of $256 million in transaction revenue, impacting total network revenue. Furthermore, according to the report’s supplemental statistics, network revenue plummeted by 26% to $14.9 million.
However, Polygon alone cannot be blamed for the above-mentioned decline and losses. Considering that most of Q3 was in a dormant state – these declines couldn’t have been avoided.
MATIC trading volume has been on a decline for the past weeks. Polygon’s token dipped 6.86%, with its overall volume sitting around $271.58 million.
Apart from the volume, there was also a decline in one-day circulation of MATIC.
Despite reaching a peak of 117.36 million on October 3, circulation was down to 869,000 at the time of writing. The trend for its active addresses showed little to no change, falling from 2,747 to 2,407 at the time of publication.
