From MATIC to POL, here’s how investors are preparing
- MATIC exchange outflow increased following the news about the token’s upgrade.
- The number of new addresses joining the network decreased.
Behind the scenes, Polygon’s [MATIC] decision to transform its native token into POL seems to have matched the desires of holders. As previously mentioned, POL’s coming does not mean the exit of MATIC. Rather it would be an upgrade if approved.
How much are 1,10,100 MATICs worth today?
According to Santiment, MATIC’s exchange outflow has suddenly increased since 17 July. The exchange outflow is defined as the number of tokens withdrawn from crypto exchanges. Sometimes, these withdrawals go into non-custodial wallets as users prefer to beef up security.
But an action like that doesn’t just end there. From an investor’s perspective, taking out from exchanges means securing assets with a possible good performance in the future. And this seemed to be the case with MATIC.
Around the same period, the open interest per exchange fell to 38.48 million. The decline in this metric showed that the average market participant had little interest in depositing MATIC on exchanges or tilting toward selling the tokens.Polygon’s network growth also increased between 10 and 14 July, with over 500 new addresses joining the network. Typically, network growth describes the number of new addresses on a network.
At the time of writing, Polygon’s network growth had fallen to 464. This implies that the initial adoption experience had decreased. So, traction was no longer as stirring as it was before.
Despite the decrease in network growth, MATIC’s weighted sentiment has been on a steady increase. The weighted sentiment describes the unique social volume linked to an asset. When the metric is positive, then it means that the average comments about the asset reeks of confidence.
Conversely, when the weighted sentiment is negative, it means that the average perception is gloomy. In MATIC’s case, the weighted sentiment was -0.612.
But since it was an improvement from the value a few days back, it implies that the acumen was changing.
When it comes to the 90-day dormant circulation, on-chain data showed there have been some movements lately. The dormant circulation tracks the movement of tokens which has been held for the long-term.
Read Polygon’s [MATIC] Price Prediction 2023-2024
Specifically, on 17 July, about 19 million dormant MATIC tokens moved wallets. While it was unsure what wallets these tokens went into, it was almost certain that it was not exchanges. Therefore, MATIC is unlikely to experience any major selling pressure.
However, if the trend changes such that exchange inflow outpaces exchange outflow, then MATIC could risk falling. At press time, the token exchanged hands at $0.79— a 6.76% increase in the last 24 hours.