Can Polygon’s performance drive an auto-MATIC? Maybe not…
At the time of writing, MATIC was trading at a price of $1.080. The Relative Strength Index (RSI) dropped to 29.48 after struggling around the neutral zone, whereas the Awesome Oscillator (AO) was operating in the red zone.
However, that doesn’t tell us the whole story. In fact, the altcoin was down by 6.1% in 24 hours and down by 20.8% in 7 days, according to CoinGecko.
Even so, Polygon’s network has been seeing significant growth lately, as per the findings of Spencer Noon’s latest newsletter.
Polygon and MATIC – Same, yet different?
The Polygon network registered an adoption rate of 1.05 million active addresses over the last seven days. The most popular apps, as per the report, were QuickSwap (209k), Pegaxy (170k), Sunflower Farmers (148k), and Crazy Defense Heroes (143k). Polygon also saw massive growth in revenue for a period of seven consecutive weeks. In fact, it grew from $48K to $70K per day.
Contrary to the performance of the Polygon network, however, MATIC hasn’t been doing great. In fact, the crypto had a mere 3050 active addresses on 30 April. Furthermore, the number of daily active addresses has been following a similar pattern of average highs and lows since mid-March 2022.
Looking at the price trajectory of the token from February 2022 to April 2022, it can be seen that the token did soar to the $2-range but with significant volatility. It soon managed to soar up by some percentage, but dropped eventually well below the aforementioned level.
What’s in store for MATIC?
After recording significant volumes of approximately 2.5 billion in February, MATIC soon recorded a series of lows in the weeks that followed.
Even so, on 23 April, another high of 1.32 billion in volume was seen. What’s even more striking is that the token volume on 1 May was higher than the cumulative figures for the last seven days.
Additionally, there has been a significant increase in the number of ETH wallet holders investing in MATIC.
As per data from Dune Analytics, there are at least 125,409 ETH wallets with > 100 MATIC tokens and at least 32,717 ETH wallets with >1000 MATIC tokens.
The total number of wallets was also at its peak, as of 1 May.
The Twitter Talk
Polygon’s CEO Ryan Watt recently took to Twitter. He shared the Nansen report which found that Polygon network had a billion transactions in the year 2021 and launched 19,000 dApps.
And yet, despite everything, MATIC doesn’t seem to be bullish at the moment. Can the network’s performance drive the value of the token? It’s hard to say.