- Polygon’s PoS chain and zkEVM record milestones, with daily transactions soaring.
- MATIC struggles with a more than 9% decline amid increased liquidation and negative sentiment.
- Analysis reveals bearish indicators for MATIC, but zkEVM’s features provide hope for a turnaround.
In recent times, Polygon’s [MATIC] network has witnessed significant growth, marked by notable achievements in both its Proof-of-Stake (PoS) chain and the zero-knowledge rollup technology, zkEVM. Despite these advancements, the native token MATIC has faced a downturn, raising questions about its immediate revival.
Polygon’s Progress and Adoption Surge
Celebrating its accomplishments, the Polygon PoS chain achieved a remarkable milestone of 3.2 billion total transactions. Simultaneously, the zkEVM platform hit a three-month high in daily transactions, exceeding 100,000 on November 26. As a result, the cumulative transactions on Polygon zkEVM crossed the eight million mark.
The Polygon PoS chain has reached 3.2B total transactions. pic.twitter.com/wMMKEi5JMA
— Today In Polygon (@TodayInPolygon) November 24, 2023
Further exploration by AMBCrypto revealed positive trends in both Polygon PoS and zkEVM. Daily Active Addresses and Daily Transactions for both platforms exhibited an upward trajectory, accompanied by an improvement in captured value and increased revenue.
Polygon zkEVM just recorded a 3 month high in daily transactions with over 100K. pic.twitter.com/6X6OmwuLep
— Today In Polygon (@TodayInPolygon) November 26, 2023
MATIC Faces Investor Discontent
In contrast to Polygon’s flourishing network activity, MATIC, the native token, failed to attract investors. CoinMarketCap reported a more than 9% decline in MATIC’s value over the last seven days, with its current trading price at $0.7548 and a market capitalization exceeding $7 billion.
Analyzing data from Hyblock Capital, AMBCrypto found that MATIC experienced increased liquidation when its price touched the $0.8 mark, coinciding with a subsequent decline over the past week.
Confirmation of heightened selling pressure on MATIC came from Santiment’s data, which indicated an increase in Polygon’s supply on exchanges while its supply outside of exchanges decreased. Negative sentiment persisted around MATIC, as reflected in a drop in its MVRV ratio, contributing to the overall downtrend.
Bearish Signs in Market Indicators
Several market indicators added to MATIC’s challenges. The Money Flow Index (MFI) showed a sharp downtick, and Polygon’s MACD displayed a bearish crossover. However, a glimmer of hope appeared through the Bollinger Bands, suggesting that MATIC’s price might enter a less volatile zone, hinting at potential stability in the coming days.
As Polygon’s network continues to thrive, the fate of MATIC remains uncertain. Investors keenly await whether the innovative features of zkEVM can act as a catalyst to reverse MATIC’s bearish trend and revive investor confidence in the native token.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.