Can Polygon’s network activity save MATIC from the bears?
- Though Polygon’s network activity increased, it was still less than at the beginning of 2023.
- MATIC was down by over 1%, and most metrics looked bearish.
After a drop, Polygon’s [MATIC] network activity showed signs of recovery as a few key metrics shot up. A drop in network activity means that the blockchain is not being used to its potential.
Read Polygon’s [MATIC] Price Prediction 2023-24
Though the scenario changed a bit, Polygon was way behind the benchmark it set at the beginning of this year.
Polygon is reviving
Polygon’s key network stats have been on a declining trend for quite some time. However, as per Today In Polygon’s tweet, the blockchain’s daily active addresses shot up by 10% over the last seven days.
Polygon PoS daily active users have increased 10% over the last 7 days. pic.twitter.com/ACiGuZYVIj
— Today In Polygon (@TodayInPolygon) September 21, 2023
This data looked encouraging, as it suggested that more users were entering the network. Thanks to the uptick in active users, the blockchain’s transactions followed a similar increasing trend.
Another tweet from the account revealed that Polygon’s daily transactions spiked by 9.1%. Though this was definitely a sign of revival, the blockchain’s metrics were nowhere near what they used to be at the beginning of this year.
Polygon PoS daily transactions increased 9.1% over the last 7 days. pic.twitter.com/HucWhkZEgf
— Today In Polygon (@TodayInPolygon) September 22, 2023
Additionally, Artemis’ data pointed out that Polygon’s press time active addresses and transactions were substantially lower than those in January 2023. Not only that, but the blockchain also witnessed a massive decline in terms of the captured value.
This was evident from the southward movements of both its fees and revenue. Polygon’s performance in DeFi also dwindled over the last few months, as its TVL dropped by a large margin.
MATIC bears are dominant
While the blockchain showed some sign of recovery, that wasn’t the case with MATIC. As per CoinMarketCap, the token was down by more than 1% over the last seven days. At press time, it was trading at $0.5216 with a market capitalization of more than $4.8 billion.
A look at its metrics shed light on what was going wrong.
Notably, Polygon’s supply held by top addresses dropped slightly, suggesting that the whales were not confident in the token. Another bearish metric was MATIC’s Open Interest, which increased while the token’s price plummeted.
Regardless, MATIC’s velocity was high. A higher velocity means that a coin or token is used in transactions more often within a set time frame.
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Investors might have to witness a few more days of negative price action. This trajectory seemed likely, as both Polygon’s Relative Strength Index (RSI) and Chaikin Money Flow (CMF) took a sideways path.
However, the MACD showed signs of hopefulness, as it displayed a bullish edge in the market.