Polygon Q4 Market Cap Increases 31% to $3.8 Billion
In Q4 2024, Polygon (formerly MATIC) showed mixed results influenced by the launch of its interoperability protocol, Agglayer.
Market Capitalization and Agglayer Launch
- Market cap reached $3.8 billion, rebounding from a low of $2.9 billion in Q3 after a peak of $12.9 billion in Q1.
- Agglayer aims to enhance cross-chain communication and transfers using zero-knowledge (ZK) proofs.
- The protocol aggregates proofs, verifies chain states, and settles transactions on Ethereum.
- 88.1% of the total supply transitioned to POL, establishing it as the largest Ethereum Layer-2 token by market cap.
DeFi and NFT Market Challenges
- EIP-4844 reduced transaction fees to $0.01 but led to a 2% QoQ drop in total transactions.
- Active addresses decreased by 39.4%, averaging 523,000 daily users, primarily due to a decline in gaming engagement.
- Total value locked (TVL) in DeFi ended at $871.5 million, down 4.9% QoQ and 2.6% YoY, dropping Polygon to the twelfth largest network by TVL.
- NFT trading volume fell to $822,500, down 38.4% QoQ, with average daily sales dropping to 21,000, a 41.5% decrease.
POL's price has dropped 67% year-to-date, currently trading at $0.30.
