Arbitrum Beats Polygon in dApp Race: Will MATIC Price Suffer?

• The overall DEX volume on Polygon is decreasing, while Arbitrum has overtaken it in terms of Gains Network usage.
• Total Value Locked (TVL) of Polygon fell by 0.28% in the last 24 hours, and its token MATIC’s price also decreased due to this.
• High volatility for MATIC would prevent risk-averse investors from buying it, and it remains to be seen whether the decline in Polygon’s activity is only a temporary setback.

Decline in Polygon’s DeFi Activity

Recent data from Delphi Digital suggests that Arbitrum has outperformed Polygon in the dApp space. This has caused a noticeable decrease in overall dApp activity and TVL within the Polygon network.

Effects on Ecosystem

The DEX volume on Polygon started going down rapidly, falling from $128.63 million to $23.9 million over the past few days according to Dune Analytics. Additionally, all other dApps such as Balancer and Meshwap experienced a fall in activity as well, resulting in a 0.28% decrease in total value locked (TVL) of Polygon over the last 24 hours – according to DeFiLlama’s data – which stands at $1.15 billion at present time.

Impact on MATIC Token

Due to this fluctuation in price, MATIC’s volume dropped from 1.4 billion to 463.73 million over several days; likewise its price also decreased significantly – leading to high volatility for MATIC which would likely drive away risk-averse investors from buying it altogether..

Future Outlook

It remains uncertain whether or not this downturn will only be short-lived; if the decline continues, both the Polygon network and its associated token MATIC would suffer greatly due to lack of interest and activity among investors and users alike..

Conclusion

Overall, recent data suggests that Arbitrum is outpacingPolygonin terms of Gains Network usage while various other factors have caused a notable decrease in DEX volumes, total value locked (TVL), NFT trades and more – all leading up to an overall dropin interest among investors forMATICtokenandthePolygondappspacealtogether..