As Polygon awaits PIP approval, MATIC gets back on track
MATIC’s price dropped by more than 20% over the last month, but things have started to turn in the token’s favor.
- Sandeep Nailwal pointed out the benefits POL will bring if the PIP gets approved.
- MATIC’s daily chart turned green, and a few metrics were bullish.
Over the last month, Polygon [MATIC] shed a substantial amount of its market capitalization, pushing it down to the 13th spot on the list of top cryptos. However, if Polygon’s latest PIP is approved, the blockchain could be one to watch out for, and here’s why.
Read Polygon’s [MATIC] Price Prediction 2023-24
Polygon losing its ground?
According to CoinMarketCap, MATIC’s price dropped by more than 20% in the last 30 days. In comparison, Polkadot [DOT] and Tron [TRX], which have somewhat similar market caps, only bled 11% and 9%, respectively.
At the time of writing, MATIC was trading at $0.5592 with a market cap of $5.2 billion.
The massive drop in price caused the majority of investors to bear losses. Notably, IntoTheBlock’s data revealed that more than 95% of the addresses’ average cost of acquiring MATIC was higher than the token’s press time price.
This episode resulted in a spike in Polygon’s Daily On-Chain Transaction Volume in Loss in the last month.
Alongside this, DeFiLlama’s data revealed that Polygon’s TVL has been on the decline over the last few months. At press time, Polygon’s TVL stood at $1.153 billion.
A look into Polygon’s future plans
Sandeep Nailwal, co-founder of Polygon, recently posted a tweet highlighting what the blockchain’s future might look like. He primarily mentioned POL, which is considered to be the successor of MATIC.
For the uninitiated, POL looks to deliver the benefits of multi-chain staking without the added risk of restaking. Moreover, stakers can use POL in any number of chains and roles, allowing for higher rewards with their staked capital.
https://twitter.com/sandeepnailwal/status/1696102126236143881?ref_src=twsrc%5Etfw
When a Twitter user asked what would happen to the already staked MATIC, Nailwal replied that ideally, as a user, one should get a 1/2-click upgrade to staked POL from staked MATIC.
https://twitter.com/sandeepnailwal/status/1696105526394806620?ref_src=twsrc%5Etfw
Is your portfolio green? Check out the MATIC Profit Calculator
While the blockchain’s future had immense potential, things on the ground also started to turn in MATIC’s favor as its daily chart turned green. MATIC’s supply on exchanges dropped, while its supply outside of exchanges increased slightly.
The token’s supply held by top addresses also shot up, reflecting whales’ trust. However, MATIC’s weighted sentiment remained on the negative side, which was bearish.
