Tether Dominates Polygon Stablecoin Market With $792M Cap, Growing 29% QoQ

Polygon has seen impressive growth in stable coin market capitalization this quarter.

According to Messari's latest report, the stablecoin market for Ethereum's Layer 2 solution has grown to $1.5 billion, representing a whopping 19% quarter-over-quarter increase.

Stablecoin Adoption at Polygon Soars

Tether has strengthened its position as the main stable coin on Polygon, with its market cap growing by an impressive 29% QoQ to $792 million, according to Messari's report. This amounts to a whopping 53% of the total stablecoin market on the network.

This development of stable coinage on polygons was further enhanced by several notable developments of the time.

For example, in April, Sony Bank launched experiments exploring the use of stablecoins on the Polygon blockchain, with the ultimate goal of evaluating it as a settlement method for digital sales across the Sony Group, including video games.

Additionally, Belgian tech company Settlemint has announced plans to develop a stablecoin Polygon, further highlighting the growing popularity of the Layer 2 network in the stablecoin ecosystem.

“Polygon's stablecoin market capitalization increased to $1.5 billion, representing 19% QoQ growth. USDT extended its position as the leading stablecoin, with market volume growing 29% QoQ to $792 million, representing 53% of the total stablecoin market value.

Gaming, DeFi and NFT on Polygon

The gaming sector at Polygon also grew during the first quarter of 2024. Messari saw the number of daily active gaming-related contacts on the platform increase by 1,615% over the quarter, reaching 207,000 contacts.

Additionally, daily gaming transactions on Polygon saw a 469% QoQ increase, rising to 734,000 transactions. This growth in gaming activity was mainly driven by the huge popularity of MATR1X's MATR1X FIRE game.

Beyond the gaming sector, Polygon's decentralized finance (DeFi) ecosystem has also seen significant growth, with the number of daily active DeFi addresses increasing by 67% QoQ to reach 50,000 addresses.

While the virtual token (NFT) and social sectors have seen significant growth in activity, they have been relatively small compared to the gaming and DeFi domains in the Polygon ecosystem over the same period.