Polygon overtakes Solana and BNB in GameFi: How did MATIC react

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dApps such as Planet IX and The Sandbox contributed to Polygon’s success in the GameFi success.
DEX volumes continued to rise, however, the price of MATIC fell.

In the crypto space, there has been a constant race between various protocols in terms of activity. With Tron [TRX], Binance Coin [BNB], and Arbitrum [ARB] attracting large amounts of activity on their networks, it becomes difficult for protocols such as Polygon [MATIC] to compete.

Realistic or not, here’s MATIC market cap in BTC’s terms

Polygon here to play no games

However, Polygon’s progress in the gaming sector may provide the protocol with an edge. According to Delphi Digital, on 5 May, Polygon became the leading chain in GameFi. Additionally, over the last 90 days, Polygon captured 34.93% of the overall GameFi market.

Other L1 chains such as Solana [SOL] and Binance Smart Chain [BNB] acquired the second and third positions in terms of market share, accounting for 26.80% and 17.90% of the market, respectively.

.@0xPolygon has the most active GameFi wallets out of all Layer-1s over the past 90 days. pic.twitter.com/yqJI1AQSX1

— Delphi Digital (@Delphi_Digital) May 14, 2023

Gaming dApps such as Planet IX and The Sandbox [SAND] were largely responsible for Polygon’s dominance in this sector. Over the last week, both protocols observed a spike in terms of unique active wallets on their networks. Planet IX demonstrated a surge of 13.64% in the number of active wallets, whereas The Sandbox experienced a spike of 3.4%.

Due to this surge of activity, the protocols were positively impacted in other areas as well. For instance, transactions occurring on the Planet IX network surged by 60.88% in the last week. Subsequently, the volume on the dApp grew by 26.9%.

However, the spike in activity on the dApp did not lead to larger NFT transactions. According to Dapp Radar’s data, despite the high activity, the volume of NFT trades occurring on these gaming protocols continued to decline.

Source: Dapp Radar

Apart from the GameFi sector, Polygon also displayed dominance in the DeFi markets. In terms of TVL, Polygon outperformed most protocols apart from Ethereum [ETH].

Polygon’s dominance in the DeFi sector could be attributed to the popularity of its DEXes. Artemis’ data indicated that the DEX volumes on the Polygon network surpassed most other networks in the crypto space.

Source: Artemis

Read Polygon’s [MATIC] Price Prediction 2023-2024

Despite Polygon’s dominance in the DeFi and Gaming sectors, MATIC saw little growth. According to CoinMarketCap’s data, MATIC’s price declined from $0.93 to $0.88 over the last week until press time.

During the same period, MATIC’s volume and transaction count fell as well.