Full deep dive in analysis on Matic (polygon) — Part 2

From my part 1 of matic( polygon) report, I had mentioned about the staking ratio and amount of matic token on centralized exchange. In today report, we will dive in deeper to see the users of matic and the assets being bridged to matic network.

Firstly, let’s us reviewed the price of matic. At the time of writing this, matic current price is now $1.70 compared to the time i write is about $0.80.( around 110% gains). Matic(polygon) market cap is now in the top 20. Can we still see potential upside for matic? Let’s see…

Number of address holding eth vs matic

At the current time of writing, we can see the number of address holding eth is sitting at 176000, while the number of address holding matic(polygon) is sitting at 81499. From the beginning of 2021, the ratio between the number of address holding matic vs eth is only about 19%. The ratio had being increased rapidly to current ratio of 45%. Starting from march, we can see huge accumulation of matic token by users. This might due to all the highly incentivize farming of L2. A lot of project had being deploy on matic network. The key highlight is the current ratio of 45%. There is still room to grow for other ethereum users migrate towards matic network due to the high gas fees of ethereum.

Accumulative user interacted with matic(polygon) bridge

The chart above shown us that the accumulative user interacted with the matic bridge at least once. Daily average new user is now at 86 new users per day. Currently there is over 20k of users had interacted with matic bridge to bridge over the asset to matic network. We expect more the trend will continue to increase as long as the highly congested eth network is still exists.

TVL on matic(polygon)
TVL of DFYN & quickswap
TVL of sushi on matic network

The total value locked in matic(polygon) network is at all time high sitting at more than 8 billion. More than half of it is contributed by aave. TVL of new cross chain dex DFYN and largest L2 dex quickswap is also ramping up. DFYN is only launch within a week at had achieved more than 100 million in liquidity. Next we can see the great milestone achieved by sushi. The TVL of sushi on matic network had reached 500 million since the bootstrap of liquidity mining on matic network. The APY is highly incentivized and LP is not only earning sushi but also matic token. Its a dual token farming with high yield. Who do not like to farm in there?

APY of sushi LP pair

Okay. Too many protocol integrating with matic and too much to list here one by one. The last one I’m going to mention is 1inch. 1inch is one of the leading DEX aggregator that are on eth and bsc network and now will be integrating matic network. In the coming weeks, I highly expect 1inch will be bootstrap liquidity mining for matic. By that time, the supply on CEX will be draining out and matic pricewill be spike up due to the all time low supply on CEX. (which is just my opinion). Too many adoption which I could not finish with. (perhaps there is part 3 matic analysis?)

Last and the most important part of this analysis.

Let’s us see the assets being bridge over to matic(polygon) network.

Assets being bridge to matic(polygon)

Starting from 11 April, these five asset had largely being bridge over to matic network including USDC, WBTC, USDT, DAI, AAVE. The largest portion is contributed by WBTC. Although I had not doing enough research, but I highly suspect the users is bridging over WBTC for provide liquidity for yield farming. (Since the APY is really attractive). Imagine what happen when more assets like WBTC being bridge over to matic network?

BoringDAO is a providing decentralized asset bridge accessing different blockchains. BoringDAO has a special tunnel mechanism which can easily bridge over assets to other blockchain. Recently boringDAO announce the partnership with polygon. After the deployment of boringDAO on matic network, users can use oBTC or oLTC on polygon for further usage. This bridge over of assets will make matic(polygon) currencies richer, and the liquidity of the asset pool will increase significantly. What happen after that? (matic could go another brrrrr….)

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Source: https://app.flipsidecrypto.com/dashboard/matic-polygon-full-analysis-dashboard-arZhi6

A stock investor that step into crypto space and deeply into crypto now