Report Shows Polygon Users Rivaled Ethereum In 2023, But Why Has Price Failed To Clear $1?
January 26 2024 - 6:30AM
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Layer-2 network Polygon is reported to have competed with Ethereum
in 2023, as both networks saw the most influx of new users. This
development has once again raised concerns about MATIC’s price,
considering that such an achievement should potentially mean that
new money moved into the ecosystem last year. Polygon and
Ethereum Acquired The Most Users In 2023 According to a report by
Blockchain analytics firm Flipside, Polygon and Ethereum led the
pack with 30.6 million acquired users in 2023. Giving a further
breakdown, Polygon is said to have acquired 15,24 million users,
while Ethereum attracted 15.4 million users. Meanwhile, these users
are defined as persons who performed at least two transactions on
the networks. Related Reading: Cardano Defies Bear Market As
Smart Contracts Count Sees 10,000 Explosion Despite falling about
160,000 short of Ethereum’s numbers, Polygon’s numbers are still
impressive, considering that it ranked ahead of other networks like
Bitcoin and Solana. The layer-2 network also outperformed other
Ethereum L2 networks like Arbitrum, Optimism, and Base, which
recorded 7.3 million, 3.3 million, and 1.9 million acquired users,
respectively. Notably, Polygon hit the ground running as soon
as 2023 began, setting the record for monthly acquired users with 2
million in January. Interestingly, January 2023 was the first time
MATIC rose above $1 in a very long while. It held above that level
until the end of April 2023. After that, MATIC traded below that
level for most of the year, only rising above $1 towards the end of
December 2023. MATIC price at $0.74 | Source: MATICUSDT on
Tradingview.com Why Has MATIC Failed To Rise And Hold Above $1 A
recent analysis by Blockchain intelligence firm ChainArgos
suggested that the Polygon team has been secretly selling off MATIC
tokens, something which could have accounted for the significant
sell pressures that have risen at different times for the crypto
token. This could also serve as a plausible explanation for why
MATIC has struggled to hold above $1 despite enjoying great
utility. The Polygon team was accused of not executing its
token allocations in line with the publicly stated plan, with part
of the allocated funds accounting for some of the tokens that were
sold. These secret sales, which have for long gone under the radar,
are said to be circumvented through wallets linked to the crypto
exchange Binance. Related Reading: RippleX Announces Major
Update For XRP Ledger EVM Sidechain, Can This Trigger A Price
Recovery So far, about 767 million MATIC have apparently been
offloaded in these secret transactions. ChainArgos hinted at how
these transactions have no doubt affected MATIC’s price on
different occasions, as they noted that the outflows are a “good
indicator for an upcoming top and subsequent move lower.” At the
time of writing, MATIC is trading at around $0.73, up in the last
24 hours, according to data from CoinMarketCap. Featured
image from CoinGape, chart from Tradingview.com
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