Altcoins

Polygon: Can high network activity push MATIC north


  • Regardless of a hike in lively addresses, Polygon’s each day transactions dropped.
  • MATIC was down by 13%, and some metrics seemed bearish.

As we conclude the primary week of 2024, Polygon’s [MATIC] community exercise has gained upward momentum. The achievement displays an increase in adoption and utilization within the latest days.

Whereas that occurred, the crypto market turned bearish, which precipitated MATIC’s worth to plummet considerably.

Polygon’s community exercise on the rise?

Sandeep Nailwal, co-founder of Polygon, lately posted a tweet highlighting the blockchain’s achievements.

As per the tweet, Polygon PoS recorded the very best variety of each day lively addresses in the course of the first week of 2024 since October 2023, averaging 500 thousand per day.

Since this clearly prompt an increase in Polygon’s demand and adoption, AMBCrypto took a better have a look at the blockchain’s community well being. Our evaluation of Artemis’ knowledge discovered that MATIC’s each day lively addresses had been truly rising for a number of weeks.

Moreover, as per Polygonscan’s data, the blockchain’s each day fuel utilization chart additionally remained secure all through the final month.

Nevertheless, it was shocking to notice that regardless of the hike in lively addresses, Polygon’s variety of each day transactions has considerably declined within the latest previous.

Supply: Artemis

Issues when it comes to captured worth additionally didn’t look good for MATIC, as a number of of the ley metrics dropped.

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For instance, after a snug rise, Polygon’s TVL dropped. Not solely that, however the generated charges and income additionally registered a decline, which seemed regarding.

Supply: Artemis

MATIC bears are placing strain on traders

Amidst this, MATIC’s worth motion turned bearish, which will be attributed to the broader market rivalry, inflicting most cryptos to shed their values.

In response to CoinMarketCap, within the final seven days alone, MATIC was down by greater than 13%. On the time of writing, it was buying and selling at $0.8323 with a market capitalization of over $7.9 billion.

To see what precipitated this downtrend, AMBCrypto checked MATIC’s liquidation heatmap. Our evaluation discovered that promote strain on Polygon surged considerably when its worth touched the $1.03 mark, initiating a worth downtrend.

The same hike in liquidation was additionally famous close to the $0.89 mark, which additional pushed the token’s worth down.

Supply: Hyblock Capital

As per CryptoQuant, MATIC was nonetheless reeling below promote strain as its web deposits on exchanges had been excessive in comparison with the final seven-day common. Because of the worth decline, MATIC’s MVRV ratio plummeted sharply.


Is your portfolio inexperienced? Verify the MATIC Revenue Calculator   


Nevertheless, its community progress remained excessive, that means that extra new addresses had been created to switch the token.

Moreover, whales’ confidence in MATIC was additionally excessive, as evident from the slight rise in its provide held by prime addresses.

Supply: Santiment



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