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- Polygon’s revenue declined in the first quarter.
- This occurred despite the growth in network usage during that period.
In new a reportMessari found a second layer measuring platform ribbed [MATIC] It reported a decline in quarterly revenue between January and March.
According to on-chain data provider, the decline in revenue occurred despite the rise in network activity Polygon during the period under review.
Between January 1 and March 31, the network’s total revenue was $7 million, which represents a 19.3% decrease from the $10 million recorded in the fourth quarter of 2023.
The first-quarter number also represents a 42% decline from the $12 million that Polygon saw in quarterly revenue in Q1 2023.
Increase in network activity
As noted above, the quarter under review was characterized by a slight uptick in activity. During that period, the network recorded an average number of daily active addresses of 814,000.
According to Messari data, this was a 118% spike in daily quarterly active addresses on the network, the highest level in a 12-month period.
Source: Al-Masari
New demand for Polygon has also increased. During the quarter under review, the average number of new addresses created on the L2 network was 127,400 addresses, representing a growth of 69% compared to the previous quarter of 75,900 addresses.
Due to the rise in the number of active addresses that frequented Polygon in the first quarter, the number of transactions completed on them also rose significantly. According to the report, the Proof of Stake (PoS) network averaged 4 million daily transactions in the first quarter of 2024.
Source: Al-Masari
In terms of decentralized network finance (DeFi), Polygon closed the first quarter with a total value locked (TVL) of $1.4 billion. This was a 30% jump from the Q3 2023 DeFi TVL of $1.1 billion.
Realistic or not, here it is Market cap of MATIC in terms of ETH
On how the DeFi protocols within Polygon performed during the quarter under review, Masari noted:
“In Q1 2024, Aave continued to lead as the dominant protocol by TVL on Polygon PoS, with TVL rising to $705 million, representing a 35% increase from the previous quarter. Uniswap jumped to second place, with a total value of Added $130 million, an increase of 41% quarter-on-quarter.
Finally, Polygon’s non-fungible tokens (NFTs) ecosystem saw an 18.4% spike in sales volume in the first three months of the year.
