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Tag: Polygon (MATIC)

  • Base Leads L2 Fees With $147K Daily as Most Chains Earn Under $5K

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    CryptoRank data showed Base capturing nearly 70% of Ethereum L2 fee revenue in a single day, far ahead of Arbitrum.

    Base led Ethereum’s layer-2 fee rankings on January 14, generating about $147,000 in daily revenue, far ahead of Arbitrum’s roughly $39,000 and Starknet’s $9,000, according to figures shared by CryptoRank.io.

    The data points to a sharp concentration of activity on one network, even as most other Ethereum scaling chains struggled to clear $5,000 in fees over the same 24-hour period.

    Base Pulls Ahead as Fee Data Shows Widening Gaps

    CryptoRank said Base’s share of total Ethereum L2 revenue was nearing 70% based on the January 14 snapshot, while all other L2s combined brought in just over $15,000. Linea posted around $4,500 in fees, Optimism $2,400, Unichain $2,000, Ink $1,500, zkSync $900, and Scroll $600, showing how thin fee generation remains outside the top tier.

    The fee figures quickly set off debate on social media, especially after some users pointed to Polygon’s much higher revenue on the same day. Crypto analyst Vadim and X user New York Pascal both posted that Polygon recorded about $155,000 in daily fees, slightly above Base’s total, based on a network-wide revenue table from DefiLlama shared within hours of CryptoRank’s post.

    That comparison led to questions about how Polygon should be classified. X user Thorex asked whether Polygon is an L2 at all, reflecting a long-running discussion in the community about Polygon’s mix of scaling solutions, including its proof-of-stake chain and newer zero-knowledge products.

    The distinction matters because CryptoRank’s post focused specifically on Ethereum L2s, while Polygon’s revenue figures often include activity from its broader ecosystem.

    DefiLlama’s revenue table showed Tron at the top across all chains with more than $1 million in daily fees, followed by Polygon, Base, Ethereum, BNB Chain, Solana, and Arbitrum. Within that wider context, Base still ranked near the top for Ethereum-aligned networks, even if it was not the highest-earning chain overall.

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    Ecosystem Growth Adds Context to Base’s Fee Strength

    Base’s recent fee performance comes as Coinbase continues to expand products built on the network. Late last year, the exchange launched its tokenized “Everything app,” a rebranded version of Coinbase Wallet that blends social content, trading, and payments in one interface.

    The company said the app, now live in more than 140 countries, is built on Base and uses tokenized posts and assets that can be traded directly from a social-style feed. The launch introduced new ways for users to interact on-chain, including earning from content engagement and settling rewards instantly to their wallets.

    While Coinbase has not published a direct link between the app and daily fee totals, the timing helps explain why Base continues to attract activity compared with other L2s that lack a similar consumer-facing funnel.

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    Wayne Jones

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  • Centralization Threats Loom as Polygon and Shiba Inu Exhibit High Concentration Among Top Wallets

    Centralization Threats Loom as Polygon and Shiba Inu Exhibit High Concentration Among Top Wallets

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    High centralization can lead to increased influence by a few entities, potentially undermining the decentralized ethos that crypto strives to uphold. However, centralization continues to be a major bone of contention in space.

    As such, popular project tokens – Polygon (MATIC) and Shiba Inu (SHIB) – have emerged as the leading examples of high concentration of holdings among top wallets.

    Centralization Concerns in MATIC and SHIB

    According to the data shared by Santiment, Polygon’s top ten wallets collectively control an astonishing 69.4% of its total market capitalization, making it the most centralized among major altcoins. Similarly, Shiba Inu’s top ten wallets hold 61.2% of its market cap.

    This significant concentration raises critical questions about the impact on market stability and governance for these widely traded assets. This concentration can also exacerbate risks such as price manipulation and volatility, as large holders have the power to affect market dynamics more substantially than smaller investors.

    Meanwhile, Uniswap (UNI) shows that 50.8% of its total market cap is held by the top ten wallets, indicating a significant concentration of power among a few holders. Closely trailing behind is the Pepe (PEPE) meme coin, with 46.1% of its supply concentrated in the top wallets.

    Ethereum (ETH), despite its broad adoption and decentralized governance efforts, still sees 44.0% of its market cap controlled by the largest wallets, primarily due to staking in the ETH 2.0 contract, which centralizes significant amounts of Ether.

    Tether (USDT), the most widely used stablecoin, has 33.1% of its supply in the hands of the top wallets, reflecting its widespread institutional adoption but also hinting at potential liquidity risks if these holders decide to move large amounts simultaneously.

    Moderate Centralization in LINK and TON

    Chainlink (LINK) and Toncoin (TON) show slightly lower concentrations, with 31.1% and 27.5% of their respective market caps held by the top ten wallets. For the former, this reflects the necessity of large holdings by nodes to secure the network, while Toncoin’s concentration is partly attributed to its recent growth phase, as per Santiment.

    On the other hand, stablecoins like Circle’s USDC and Multi Collateral Dai (DAI) exhibit more decentralized holdings, with the top ten wallets controlling only 19% and 24.5% of their market caps, respectively.

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    Chayanika Deka

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  • Network Activity Decline for Polygon (MATIC) but Bullish Reversal Signals Emerge

    Network Activity Decline for Polygon (MATIC) but Bullish Reversal Signals Emerge

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    Polygon (MATIC) has been experiencing a decline in network activity since the broader crypto market retrace began in March.

    However, recent data shared by the crypto analytic platform Santiment indicates a potential shift in this trend.

    Bullish Reversal for Polygon (MATIC)?

    Polygon’s native token, MATIC, has lost over 17% of its value in the past month alone as it traded mostly below $0.52. Subsequent declines dragged the asset to the press time price of $0.43, but this could be an opportunity for buyers to amass it at a low valuation.

    In its latest post on X, Santiment observed there had been a notable rise in dormant token transactions on August 28th, coinciding with the second-largest number of Polygon addresses interacting with the network this year.

    In fact, a total of 3,369 addresses interacted on-chain on Polygon as the Age Consumed metric spiked to 69 billion MATIC on the same day. Both of these metrics often serve as precursors to market reversals.

    As such, these signals suggest that MATIC could be on the verge of a recovery, potentially marking the beginning of a much-needed bullish phase for the network as it emerges from its prolonged downtrend.

    The Migration: MATIC to POL

    The Polygon ecosystem is preparing for the official switch from MATIC to the POL token, scheduled for September 4 this year. This upgrade will essentially see POL take over as the native gas and staking token for Polygon’s Proof of Stake (PoS) chain, reflecting an important milestone in the Polygon 2.0 roadmap released last year.

    The POL upgrade was initially launched on the testnet on July 17 to facilitate a smooth transition. The main focus of this phase was to detect and address potential issues, allowing users and developers to get accustomed to the new system before the mainnet upgrade.

    MATIC holders on the Polygon PoS chain will experience an automatic, seamless conversion to POL. The users are not required to take any action from their end. However, MATIC holders on Ethereum, Polygon zkEVM, or centralized exchanges will need to upgrade manually through a migration contract on Ethereum, as reported earlier.

    This week, Binance announced its support for this upcoming transition.

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    Chayanika Deka

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  • Crypto Analyst Reveals 10 Top Altcoins To Watch This Week

    Crypto Analyst Reveals 10 Top Altcoins To Watch This Week

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    The altcoins market has recently witnessed a resurgence of interest and confidence, primarily driven by the largest cryptocurrency, Bitcoin (BTC). This renewed enthusiasm has resulted in a bull uptrend, with most of the top 100 cryptocurrencies benefiting from Bitcoin’s resurgence. 

    However, the market is currently experiencing a correction as Bitcoin and Ethereum (ETH) face pullbacks after failed attempts to breach upper resistance lines. Despite this correction, crypto analyst Miles Deutscher shares insights and highlights several altcoins with potentially significant gains.

    SOL Emerges As Safe Haven In Crypto Market Correction

    Solana has exhibited remarkable growth, even as the broader market experiences a correction. With a 0.5% gain in the past 24 hours, SOL’s potential for further upside cannot be ignored. 

    Deutscher suggests that SOL may continue to benefit from the ongoing rotation of investments from other Layer-1 solutions like Avalanche (AVAX) and Fantom (FTM).

    SOL’s resilience during market correction on the daily chart. Source: SOLUSDT on TradingView.com

    Thorchain (RUNE) has been on an impressive upward trajectory, prompting investors to consider buying on deep corrections and wicks. The primary decentralized exchange (DEX) on Thorchain, THOR, has also shown positive movement, further bolstering the growth potential.

    Polygon (MATIC) has recently shown signs of strength and has generated whispers within the crypto community about a potential zero-knowledge (ZK) narrative. If this narrative materializes, MATIC, a leader in the space, could attract significant positive flows. 

    Within the ZK narrative, altcoins like Dusk Network (DUSK), Loopring (LRC), and Mina Protocol (MINA) are poised to benefit. Deutscher believes that each altcoin offers unique strengths and value propositions, and their performance will depend on the strength of the emerging ZK narrative.

    Soteria (SEI) has gained attention as it enters the top 10 for volume traded by pairs on Upbit. Considered a “new coin,” SEI exhibits fundamentals similar to the next altcoin on the watchlist.

    Tidal Finance (TIA) is a relatively new token similar to the early days of Aptos (APT). The market tends to favor new and innovative tokens, and although TIA’s rally may have started to cool off, it still holds explosive potential. With a current market capitalization of $700 million, TIA remains an intriguing opportunity for investors.

    DEX And Gaming Altcoins Poised To Thrive

    In addition to altcoins, perp decentralized exchange (DEX) tokens like GMX, DYDX, and Gnosis (GNS) are positioned to benefit from market volatility.

    According to Deutscher, these tokens have shown a correlation between price movements and fundamental factors. If volatility persists, these tokens could present favorable medium-term investment opportunities.

    Altcoins
    YGG’s significant 61% uptrend on the daily chart over the past 30 days. Source: YGGUSDT on TradingView.com

    Yield Guild Games (YGG) and Gamestarter (GMT), gaming tokens with initial upward movements, are expected to continue outperforming the broader market. These gaming tokens could witness sustained growth with the YGG conference scheduled for November 18.

    While the current correction in the cryptocurrency market has led to pullbacks in Bitcoin and Ethereum, the altcoin landscape still offers potential opportunities for investors. 

    Solana’s continued uptrend, along with the prospects of altcoins like Thorchain, Polygon, and those associated with the ZK narrative, suggest possible avenues for growth. Additionally, emerging tokens like Soteria and Tidal Finance, perp DEX tokens, and gaming tokens may also provide favorable investment prospects. 

    (This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

    Featured image from Shutterstock, chart from TradingView.com 

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    Ronaldo Marquez

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