Altcoin
What Polygon 2.0 means for the network
Polygon’s network activity has been down for the past few days. But the launch of Polygon 2.0 can stir things up.
- The number of daily active addresses on Polygon registered a downtick.
- MATIC is up by more than 6% in the last 24 hours, and metrics remained bullish.
Polygon [MATIC] has witnessed a decline in its daily active addresses for the past couple of days. The decline in addresses also caused its daily transactions to sink.
Read Polygon’s [MATIC] Price Prediction 2023-24
However, Polygon has made quite a few new announcements and launches in the recent past that can change the situation in the blockchain’s favor. Amidst this, MATIC investors were enjoying the benefits of the bull market.
Polygon 2.0 can be a gamechanger
The blockchain a few days ago announced Polygon 2.0. The upgrade aims to maintain seamless functionality for users and developers while enhancing security and enabling interoperability with other chains in the Polygon 2.0 ecosystem.
? @0xPolygon 2.0: A New Era of Security and Performance with #zkEVM Validium Upgrade
As a zkEVM validium, Polygon PoS would inherit Ethereum's unmatched security, while preserving low fees & high scalability.
More detail ? pic.twitter.com/oiUvxIkHba
— Polygon Daily ? (@PolygonDaily) June 21, 2023
Polygon’s network activity sinks
Artemis’ data revealed that after spiking on 14 June 2023, the number of daily active addresses on Polygon registered a downtick. Similarly, the decline in active addresses also resulted in a plummet in the daily number of transactions, which looked concerning.
Source: Artemis
Apart from network activity, the blockchain’s value also registered a decline over the last few days. This was evident from the drop in its TVL. However, it was optimistic to see the metric showing signs of recovery as the chart went up since 16 June.
MATIC to soon enter the top 10 club again?
While Polygon made back-to-back announcements, MATIC enjoyed the bull market as its price surged. Apart from the bullish market, another possible reason behind MATIC’s price surge could be the drop in its open interest. Usually, when open interest sinks, the on-going price trend changes.
Source: Coinglass
According to CoinMarketCap, MATIC’s price increased by more than 7% in the last 24 hours. At press time, it was trading at $0.6957 with a market capitalization of over $6.4 billion, making it the 11th largest crypto.
However, if the current price trend continues, the possibility of MATIC reentering the top 10 list seems quite likely to happen.
Is your portfolio green? Check the Polygon Profit Calculator
CryptoQuant’s data revealed that MATIC’s exchange reserve was declining, suggesting that the token was not under selling pressure.
As per Whalestats, MATIC was the third most purchased token among the top 100 ETH whales in the last 24 hours. Considering these datasets and the current trend, MATIC’s price might continue to increase.
