As a researcher with several years of experience in analyzing blockchain networks and their underlying metrics, I find the recent surge in activity on the Polygon network intriguing, despite the underperforming price action of its native token MATIC. The data from Santiment showing an unprecedented increase in active addresses on the network following the announcement of the migration to POL tokens is a clear indication of renewed interest and engagement within the community.
The cryptocurrency Polygon (MATIC) seems to be lagging behind the wider market, as investors’ focus mainly gravitates towards larger market cap cryptos. However, the Polygon network has seen a remarkable uptick in usage recently, reaching levels not seen since last year. This surge in activity can primarily be attributed to the upcoming transition of the MATIC token into POL tokens, as announced recently.
Polygon Network Activity Hits Yearly High
Based on data from Santiment’s on-chain analysis, there was a significant rise in the number of active addresses on the Polygon network after the token migration announcement. The Active Addresses 24-hour metric, which measures the number of unique addresses transacting within a day, revealed this surge. Notably, this heightened activity led the metric to surpass 4,200 addresses during the weekend.
An in-depth examination of the blockchain figures reveals a marked deviation from the past pattern with this unexpected increase. The daily engagement had been gradually decreasing since March. Notably, on the day preceding the spike, the number of active addresses was below 1,500. This sudden surge highlights the influence of the recent token migration announcements, suggesting a reinvigorated enthusiasm and participation among certain Polygon network members, in stark contrast to the previous slide in activity.
MATIC Price Analysis
As I pen this down, Polygon (MATIC) is priced at $0.534 in the cryptocurrency market. At present, the coin faces resistance around $0.55, a hurdle that bulls have failed to surmount within the last 24 hours. This resistance developed after a bullish trend started from the yearly low of $0.4313 hit on July 6, resulting in a 27.5% price rise leading up to $0.55.
Over a longer period, it’s clear that $0.57 has frequently acted as a formidable resistance for MATIC. The cryptocurrency has made numerous unsuccessful attempts to surpass this mark since late June. Based on IntoTheBlock’s data, there are now approximately 19,450 wallets possessing roughly 454.38 million MATIC tokens, with an average purchase price of $0.57. The significant accumulation at this price could be contributing to the resistance, as these holders may choose to sell once they reach profitability, thus putting downward pressure on the market price.
The earnings from holding MATIC are currently the least among prominent cryptocurrencies, with only approximately 30,100 wallets seeing profits. This number equates to less than 5% of the total MATIC holders. However, this situation may shift dramatically following the upcoming mainnet update.
In September, the major update from Matic Network to Polygon is planned. This upcoming event has generated great excitement among investors, which could lead to increased demand and higher prices for MATIC, ultimately benefiting its holders.
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2024-07-23 00:40