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Assessing the factors behind Polygon’s rebound

3min Read

MATIC, after a long drawdown period, increased by almost 10%. Here are the factors that played vital roles in the process.

Assessing the factors behind Polygon’s rebound

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  • MATIC was the best-performing asset out of the top 20 cryptocurrencies in the last 24 hours.
  • The growth in new addresses and open interest contributed to the hike.

The price of Polygon [MATIC] outclassed every other asset in the top 20, according to data from CoinMarketCap. In the last 24 hours, the price tracking platform showed that MATIC gained 9.24% while crossing above $0.70— a point it had struggled to overrun in the last 30 days.

Is your portfolio green? Check the MATIC Network Profit Calculator

However, the token’s run-up the charts did not suddenly appear without some underlying factors. On-chain analytic platform Santiment, in its 10 July tweet, pointed out that an increase in network growth played a part in ensuring that MATIC did not plunge.

New recruits spark

Network growth describes the number of new addresses that have participated in sending or receiving a token for the first time. And according to Santiment,  MATIC’s network growth increased to 1550 as of 9 July.

This increase implies that MATIC had gained new ground as per investors’ interest, and the Polygon network traction had increased. In several cases, this acts as vigor behind the price action

Another influential factor behind MATIC’s price rise was the supply on exchanges. At press time, MATIC’s supply on the exchange decreased to 8.4%. Previously, as of 9 July, the same metric had spiked to 9.7%.

Such a high rate depicts action by market participants to take a profit. But now that the exchange supply decreased, it means that the broader intent to sell off some of the tokens has reduced. Usually, this helps price action against facing a sharp fall.

MATIC social dominance and exchange supply

Source: Santiment

Social authority and an increasing interest

Furthermore, MATIC’s social dominance reached its highest point since July began. Social dominance considers the share of discussions of an asset compared to others in the top 100 per market capitalization.

As shown above, the hike to 1.062% signals that the token has gained increased attention from the broader market. Also, this serves as a bullish signal. Hence, the metric was able to influence the increase in MATIC’s value

Meanwhile, Coinglass revealed that MATIC’s Open Interest over the last 24 hours has significantly increased. The Open Interest is described as the total number of futures contracts held by market participants at the end of a trading day.

How much are 1,10, 100 MATICs worth today?

When the Open Interest decreases, it means that money was flowing out of the market and there was no strength behind the price action. 

Therefore, the increase in MATIC’s Open Interest means that more positions have been opened than have been closed. As a result, this puts MATIC in a pole position for a further price increase, barring any major change.

MATIC Open Interest

Source: Coinglass


Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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