Polygon, the Ethereum scaling solution, closed Q4 2024 with mixed results as it continues expanding its enterprise partnerships while experiencing a decline in gaming activity.
The network’s POL token saw its market cap rise 31% quarter-over-quarter to $3.8 billion, despite decreased user engagement in some sectors.
The most significant development was Polygon’s launch of Agglayer v0.2 testnet in December 2024, with mainnet release scheduled for February 2025. This new protocol aims to solve blockchain interoperability issues by connecting different chains and allowing them to share data and assets seamlessly.
Gaming, previously Polygon’s fastest-growing sector, saw a major slowdown. Average daily gaming users dropped 66.7% to 54,000, mainly due to reduced activity on the MATR1X platform.
However, Polygon maintained its developer growth, ranking eighth in crypto with 1,240 developers.
The prediction market Polymarket emerged as a bright spot, processing nearly $3 billion in U.S. election bets. The platform reached 347,000 monthly active users and hit a peak daily volume of $376.8 million on November 5.
Major Polygon Enterprise Partnerships and Developments
Several major financial institutions integrated Polygon technology in Q4:
- HSBC used Polygon for Hong Kong’s e-HKD pilot program, creating tokenized Hong Kong Dollar deposits
- Stripe enabled USDC payments on Polygon for millions of businesses across 150+ countries
- BlackRock expanded its USD Institutional Digital Liquidity Fund to include Polygon
- German regulator BaFin approved 21X, a Polygon-based tokenized asset exchange
The network’s DeFi ecosystem showed resilience, with total value locked (TVL) reaching $871.5 million. Aave remained the largest protocol with $388.7 million TVL, growing 18.9% from the previous quarter.
The migration from MATIC to POL tokens progressed significantly, with 88.1% of the supply now transitioned. The new POL token implements an inflationary model with a 2% yearly emission rate, split between validator rewards and community treasury.
Looking ahead, Polygon’s focus remains on scaling solutions and cross-chain compatibility. With the upcoming Agglayer mainnet launch, Polygon Miden Beta testnet, and ongoing expansion of Chain Development Kit (CDK) chains, the network continues positioning itself as a key infrastructure provider for Web3 applications.
The combination of institutional adoption and technical advancement suggests Polygon is strengthening its position in the blockchain ecosystem, despite temporary setbacks in gaming activity.
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