Markets
Tether dominates Polygon’s stablecoin market with a cap of $792 million, growing 29% quarter-on-quarter
Polygon saw a remarkable increase in its stable market capitalization this quarter.
According to Messari’s latest report, the Ethereum Layer 2 solution’s stablecoin market cap climbed to $1.5 billion, reflecting a significant 19% quarter-over-quarter increase.
Stablecoin adoption on Polygon soars
Tether consolidated its position as the dominant stablecoin on Polygon, with its market capitalization growth by an impressive 29% quarter-on-quarter to $792 million, according to Messari report. This represented 53% of the total stablecoin market capitalization on the network.
This growth in stablecoin adoption on Polygon was further boosted by several notable developments during the period.
For example, in April, Sony Bank launched trials exploring the use of stablecoins on the Polygon blockchain, with the ultimate aim of evaluating their potential as a settlement method for digital sales within the Sony Group, including including video games.
Additionally, Belgian technology company Settlemint announced plans to develop a stablecoin leveraging Polygon, further highlighting the growing importance of Layer 2 networking in the stablecoin ecosystem.
“Polygon’s stable market capitalization increased to $1.5 billion, representing 19% growth from the previous quarter. USDT strengthened its position as the leading stablecoin, with its market capitalization growing 29% quarter-on-quarter to $792 million, representing 53% of the total stablecoin market capitalization.
Gaming, DeFi and NFT on Polygon
The gaming sector on Polygon also flourished during the first quarter of 2024. Messari observed that the number of daily active addresses associated with gaming on the platform climbed 1,615% quarter over quarter, reaching 207 000 addresses.
Additionally, daily gaming transactions on Polygon saw a 469% increase in QoQ, climbing to 734,000 transactions. This growth in gaming activity is mainly due to the immense popularity of MATR1X FIRE game by MATR1X.
Beyond the gaming sector, Polygon’s decentralized finance (DeFi) ecosystem has also seen notable growth, with the number of daily active DeFi addresses increasing by 67% QoQ to reach 50,000 addresses.
Although the non-fungible token (NFT) and social sectors also saw an uptick in activity, their scale remained relatively smaller compared to the gaming and DeFi domains within the Polygon ecosystem over the same period. period.