With MATIC’s price up 33% in the last 24 hours and market capitalization up by nearly the same level, it is MATIC against the bears while top altcoins continue bleeding. Altcoins in the top 25 are bleeding currently, as Bitcoin attempts to make a recovery. The Musk incident had a visibly negative impact on Bitcoin, Ethereum and several top altcoins’ price and the overall market capitalization.
However, despite being limited as a scaling solution for ETH L2, MATIC’s demand and trade volume have increased over the past 8 weeks.
With its high demand, volatility and dropping liquidity, MATIC stood its ground through the bloodbath and last weekend as well. The price is up nearly 30% now, and this has had a significant impact on the overall crypto market cap, demand across spot exchanges and HODLing activity.
MATIC is expected to continue rallying, based on on-chain metrics. What currently differentiates it from other altcoins is the correlation with ETH and BTC. While ETH and BTC continue being largely correlated at this point in the price rally, MATIC’s price moved in the other direction. Less than 6% HODLers have held MATIC for longer than a year, based on on-chain data, this is a key metric for traders to keep an eye on, to predict long-term ROI.
Though large transaction count has dropped on the MATIC network, overall transaction volume remained high. There were $3.55 Billion worth of transactions on the MATIC network in the past 7 days. Trade volume was up nearly 40% and is expected to continue increasing with an increase in the number and volume of transactions.
Additionally, the recent partnership and update announcements by MATIC, with Digitalax, Infura, DFyn network and NFT projects have boosted demand.
Traders and HODLers remain bullish, despite the altcoin bloodbath, and MATIC may be the last altcoin standing, with fundamentals and the application to remain relevant. There are memecoins, Ethereum, and projects like MATIC. Memecoins may have no use case, Ethereum has a use case but expensive transactions, MATIC may be the altcoin that has it all for traders.
This makes MATIC, altcoin of the week for most traders looking for short and long-term ROI on their portfolios.