Polygon Network Active Addresses Just Hit A New Yearly High, But Why Is MATIC Price Down?
July 22 2024 - 4:30PM
NEWSBTC
Polygon (MATIC) appears to be underperforming compared to the
broader market, where most of the attention is directed toward
other major cryptocurrencies with larger market caps. Despite this
subdued price movement, the Polygon network recently experienced a
significant surge in activity, reaching its highest levels in over
a year. This notable increase in activity is largely attributed to
recent announcements concerning the migration of Polygon’s MATIC
token to the new POL tokens. Polygon Network Activity Hits Yearly
High According to on-chain data from Santiment, the participation
of addresses on the Polygon network surged dramatically following
the announcement of the token migration. This increase was
highlighted by Santiment’s Active Addresses 24-hour metric, which
tracks the number of network addresses that either sent or received
transactions within a 24-hour period. Remarkably, this spike in
activity propelled the metric to exceed 4,200 addresses over the
weekend. Related Reading: Crypto Analyst Says ‘Think Bigger’,
Bitcoin Price Is Headed To $100,000 A deeper analysis of the
on-chain data reveals that this surge represents a significant
departure from the previous trend. Daily activity has been on a
steady decline since March. In fact, the day before the spike, the
Active Addresses metric recorded fewer than 1,500 active addresses.
This sharp rise underscores the impact of the token migration news,
indicating a renewed interest and engagement among some
participants of the Polygon network, which contrasts sharply with
the earlier downward trend in activity. MATIC Price Analysis At the
time of writing, Polygon (MATIC) is trading at $0.534. The
cryptocurrency is currently contending with a resistance level of
around $0.55, a barrier that the bulls have been unable to overcome
in the past 24 hours. This resistance emerged following a bullish
price movement from a yearly low of $0.4313 that kickstarted on
July 6, representing a 27.5% increase up to the $0.55 mark. Looking
at a broader timeframe reveals that this price point has
consistently posed a strong resistance level ranging up to $0.57.
MATIC has made many attempts to break past this level since the
last week of June. According to data from IntoTheBlock, there are
currently 19,450 addresses holding a total of 454.38 million MATIC
tokens at an average price of $0.57. This concentration of holdings
around the $0.57 price level likely explains the resistance, as
many addresses might be likely selling after moving into
profitability, thereby exerting downward pressure on the price.
Related Reading: Can Burns Send The Shiba Inu And LUNC Price To
$0.01? Expert Chimes In MATIC’s profitability count is currently
the lowest among major cryptocurrencies, with only 30,100 addresses
in profit. This figure represents less than 5% of the total
addresses holding MATIC. However, this could change very soon after
the mainnet upgrade. The mainnet upgrade from MATIC to POL is
slated to take place in September. The anticipation surrounding
this event could generate significant buying pressure for MATIC,
potentially improving holder profitability. Featured image
created with Dall.E, chart from Tradingview.com
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