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MATIC overtakes BTC and ETH in key metric: Can its rally continue?

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2 years ago

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Source: Unsplash

  • Polygon’s price increased by more than 50% in January 2023.
  • MATIC’s NFT ecosystem continued to grow and metrics looked in its favor.

Polygon [MATIC] outperformed cryptos with a higher market capitalization, including Bitcoin [BTC] and Ethereum [ETH], in terms of its performance on the price front in January 2023. As per the latest data, MATIC’s price increased by 53%, while BTC and ETH rose by 41% and 36%, respectively. 

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CoinMarketCap’s

data revealed that MATIC’s price increased by over 7% in the last seven days, and at the time of writing, it was trading at $1.26 with a market capitalization of more than $11 billion. 

But not only in terms of price, MATIC also registered growth in its unique addresses lately as it exceeded that of Binance Coin [BNB] and Ethereum, which made MATIC a leading player in the blockchain space.

 

Polygon NFT continues to rise

MATIC ended the last year on a good note as its NFT ecosystem flourished. As per Polygon Daily’s data, Polygon’s NFT transaction count and transfer count skyrocketed in December 2022. Trading activity saw a decline throughout 2022, but picked up in the final months and hit a new high in January 2023, with over 200k traders.

This surge can be attributed to the launch of several projects on the network, such as Reddit Collectible Avatar, Lens Protocol, and more. Moreover, CRYPTOSLAM’s data revealed that the number of buyers and sellers in the Polygon NFT ecosystem increased considerably.

As per Santiment’s chart, MATIC’s total NFT trade counts and trade volume in USD also registered upticks in January 2023.

Source: Santiment

2023 looks promising

Positive sentiments around Polygon have witnessed an uptick of late, reflecting the crypto community’s faith in MATIC. Moreover, this was yet again proven as an increase in MATIC accumulation was also noted.

Read Polygon’s [MATIC] Price Prediction 2023-24

WhaleStats, a popular Twitter handle that posts updates related to whale activity, revealed that an Ethereum whale bought 2,127,96 MATIC, which was evidence of increased whale interest. 

In addition to that, CryptoQuant pointed out that MATIC’s exchange reserve was decreasing, which suggested lower selling pressure. Another positive development was that the total number of transactions had increased, as was the daily in-chain transaction volume in profit. However, MATIC’s MVRV Ratio registered a downtick, which could bring trouble in the near term.

Source: Santiment

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