Connect with us
Active Currencies 13978
Market Cap $2,457,748,523,511.69
Bitcoin Share 51.77%
24h Market Cap Change $2.97

Polygon’s AA users rise: All you need to know

2min Read

Polygon may have achieved a marginal improvement in network activity in September compared to the previous month. What do AA users have to do with these numbers?

Polygon's AA users rise: All you need to know

Share this article

  • Polygon’s AA addresses saw a substantial uptick thanks to its appealing features.
  • MATIC could be on the verge of another major rally such as the one in June.

Did you know that not all accounts in DeFi are made equal? Polygon [MATIC] just announced positive account growth in September. Interestingly, most of that account growth occurred in account abstraction (AA) accounts.


Is your portfolio green? Check out the MATIC Profit Calculator


Account abstraction makes it possible to create accounts that can be used to independently execute transactions in smart contracts. This is a departure from Externally Owned Accounts (EOA) that are considered the norm in traditional blockchain systems.

The ability to use AA accounts directly with smart contracts introduces a new level of convenience for users.

Since AA offers an edge over traditional accounts, it would explain the surge in these types of accounts in the Polygon ecosystem. The network highlighted improved security and account automation as some of the factors that have been driving the adoption of such accounts on Polygon.

In other words, the AA accounts offer more efficiency, and this is clearly a major component in the rapid adoption of such accounts. According to Poygon, the AA accounts registered a 2.4X surge in active accounts. In addition, successful user operations soared by 3.3X.

Have AA accounts contributed to Polygon’s network activity?

According to Santiment, Polygon may have achieved a marginal improvement in network activity in September. Unsurprisingly, the number of 24h Active Addresses soared to a 3-month high during the month, signifying that there was a significant surge in activity compared to August.

Polygon active addresses and network growth

Source: Santiment

Similarly, Network Growth achieved its highest 3-month peak in September. This confirmed that there was notably more network activity in August, which might be in line with the surge in AA accounts.

However, the network activity alone may not necessarily confirm that the growth was fueled by account abstraction. This is because the on-chain data may not segregate between AA and EOA accounts.

MATIC price action recap

MATIC exchanged hands at $0.56 at the time of writing, which represented a +12% upside from its end of September lows. This bullish outcome notably occurred after retesting its June lows.


Read Polygon’s [MATIC] Price Prediction 2023-2024


Moreover, its bottom range in June yielded a 73% upside as well. This meant that MATIC could still be headed for more upside this month if history repeats itself.

MATIC price action

Source: TradingView

Note that the bullish expectations are based on historic performance and assume that demand and supply factors will be similar. On the other hand, low prices and favorable address growth could further encourage a bullish outcome.

Share

Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael's writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.