- The on-chain activity and successful alliances of MATIC have been impressive.
- Between August and October, Polygon saw a 200 percent increase in DAUs.
Polygon (MATIC) is one of the leading gainers in today’s cryptocurrency market, up 15% in the last 24 hours. Traders should remember that the last time MATIC saw such optimism, the stock continued to rise until it had gained 13,000 percent.
For over three months, MATIC traded flat before showing some strength on October 20 after the formation of a golden cross in the technical charts. Analysts speculate that the high volume of MATIC trading by crypto whales and some strong fundamentals led to the cryptocurrency’s breakout from trading sideways.
The price of MATIC increased by over 20% in less than 24 hours after Meta announced that its Instagram NFTs would use the Polygon network. After the surge, its price hit $1.06, the highest it had been in four months. It should come as no surprise that MATIC is trading in the overbought zone after such a large price increase. The current rsi value for MATIC is 75.
The fundamentals supporting MATIC’s rally
Throughout the last year, Polygon has forged alliances with a wide range of companies. Robinhood, Disney, and Starbucks are just a few of the well-known brands in this group.
In spite of this, many market watchers anticipate a 200 percent increase in the network’s native token as a result of recent partnerships with JPMorgan and Instagram. It is crucial to examine the blockchain’s adoption through network usage in addition to examining partnerships.
The number of transactions, the number of active users per day, and the total locked value are four metrics used to evaluate the success of a blockchain. Polygon’s DAUs and revenues have increased by a factor of 200 since August.
On August 5, 2022, there were 248,853 DAUs of Polygon. By October 13, that number had increased to 737,815. Those who study Reddit claim that the increase in DAUs can be attributed to the success of the NFT avatar launch. In addition, whales have played a role in the recent bullishness of MATIC.
On-chain analytics platform Santiment data shows that MATIC whales (holders of more than 10 million MATIC tokens) bought a lot more MATIC in the last month. In addition, the data demonstrated that yesterday marked the first time since February that there would be multiple MATIC transactions totaling $100,000 or more.
Polygon’s total value locked surpasses $1 billion
Total value locked (TVL) is a metric used by analysts to gauge the market’s predisposition toward a given blockchain. To secure funds on the network’s various DeFi platforms, Polygon’s TVL uses the MATIC blockchain.
A rising TVL does not, however, portend an imminent bull market in the underlying network or related assets. This can only mean that the network is expanding or that new funds are being introduced. Among protocols, MATIC, Avalanche (AVAX), and Arbitrum are the only ones with more than $1 billion in TVL.
However, Binance Chain, Tron, and Ethereum are three others with a higher TVL value (over $5 billion). Recent Token Terminal data also shows that Polygon and Fantom are the only blockchains to have rising TVL values over the course of a week.
Source: Crypto News Flash
Disclaimer: This isn’t financial advice; it’s just for education. Crypted Crypto can’t guarantee its accuracy. Every investment and trade carries some risk, so always do your own research. Invest only what you can afford to lose.
READ ALSO:
Leave a Reply