Polygon stablecoin market cap surges: Impact on MATIC

• Polygon saw an increase in the stablecoin market cap.
• MATIC fell further from the neutral line on its RSI.

Polygon [MATIC] experienced a notable increase in its stablecoin market cap. How has this influenced other metrics and the overall trend of MATIC?

Polygon sees an increase in stablecoins

An examination of the Polygon stablecoin market cap metric on DefiLlama showed intriguing trends.

The chart displayed a notable rise in the stablecoin market cap on the network, marking the highest volume observed in the last six months.

At the time of this writing, the stablecoin market cap was around $1.4 billion.

Source: DefiLlama

Further analysis of the chart showed that the market cap began a steady rise around the 14th of December. Until the 31st of December, it increased from around $1.1 billion to over $1.2 billion.

However, the rise became more pronounced at the beginning of February, bringing it to its press time level.

An increase in the stablecoin market cap serves as an indication of increased transactional activity on the network.

TVL and volume yet to feel the impact

AMBCrypto’s evaluation of Polygon’s Total Value Locked (TVL) showed a lack of significant trends in the past few weeks. At the time of this writing, the TVL was around $817 million.

Since dropping below the $1 billion range in May 2023, it has struggled to reclaim that level.

Source: DefiLlama

AMBCrypto’s analysis of the trading volume showed a decline, after surpassing $200 million and reaching over $300 million in January.

The chart depicted a decline starting towards the end of January, with a further decrease in February. At the time of this writing, the volume was around $66.5 million.

This suggested that, despite the upward movement in the stablecoin market cap, other crucial metrics are yet to reflect a notable impact.

MATIC sees consecutive declines

While the Polygon stablecoin market cap has experienced consistent upward trends, the opposite has been observed for its native token, MATIC.

How much are 1,10,100 MATICs worth today?

An analysis of the daily timeframe chart showed a decline of 1% each over the past three days. At the time of this writing, MATIC was trading at around $0.77.

The price drop has caused it to fall further from the neutral line on its Relative Strength Index (RSI).

Source: TradingView