- Amid the mass adoption of digital assets and web3 products through the Ethereum network, the Polygon ecosystem has experienced significant growth with the Polygon zkEVM registering over 100% in daily transactions in the past months.
- Following the heightened crypto speculation triggered by the US spot Bitcoin ETF frenzy, MATIC price has been attempting to breakout of a macro falling trend since Q4 2023.
Polygon (MATIC) network, a leading Ethereum-based layer two (L2) network with more than $851 million locked by dozens of web3 products, has been making notable waves in the recent past. With more than 1.2 million holders, Polygon ecosystem has significantly improved in the overall liquidity, thus attracting more institutional investors.
Moreover, the annual inflation of 7.62 percent has attracted more investors ready to stake, whereby more than 715 million MATIC has already been staked to secure the network, thus representing about 52 percent of the total MATIC in circulating supply.
Despite the notable strides made by the Polygon network to ensure sustainable future growth prospects, high competition has stifled its recent growth. Notably, the Arbitrum (ARB), Optimism (OP) have attracted a significant portion of the Decentralized Financial (DeFi) platforms. According to market data provided through Defillama, Arbitrum and Optimism have a combined TVL of more than $3.2 billion and a growing stablecoins market cap.
Closer Look at Polygon’s On-chain Performance
According to on-chain data, the Polygon network has been recording a gradual increase in daily performance. As CNF reported, the Polygon zkEVM, a network that operates similar to the Ethereum Virtual Machine but offers faster processing time and cheaper transaction fee, has recorded a 134 percent spike in daily transactions and 202 percent rise in daily active addresses.
Interestingly, the Polygon POS has also been recording a gradual increase in daily active addresses, whereby they now average at around 500k per day. According to Polygon’s official site, the Polygon POS has nearly 200 million unique addresses from more than 10k decentralized applications (Dapps).
NEW: Polygon PoS records highest amount of daily active addresses since October.
Now averaging 500K per day. pic.twitter.com/Z93SRGGyS8
— Today In Polygon (@TodayInPolygon) January 4, 2024
MATIC Price Analysis
After establishing a bear market low around 50 cents, Polygon (MATIC) price has been on a rising trend since mid-October. For the first time since December 2021, MATIC’s price has pierced through a macro falling trend, thus increasing the chances of a potential bullish breakout towards an all-time high.
However, MATIC’s price must consistently close above 97 cents in the coming weeks to completely invalidate the bear market. Meanwhile, MATIC bulls could be risking a drop towards the psychological support of around 64 cents.
Nonetheless, MATIC’s bullish outlook is bolstered by the weekly Relative Strength Index (RSI), which has been consolidating above the 50 level in a bullish pennant. Additionally, the weekly 50 Moving Average (MA) has been acting as a support level in the past few weeks, thus indicating a shift in short-term sentiments.
Market Outlook
The mid-cap altcoin has a market capitalization of about $10 billion and an average daily trading volume of around $381 million. The future growth prospects of Polygon remain bright for as long as the Ethereum ecosystem is still making waves in the web3 and digital assets industry.According to the latest market data, MATIC’s price has gained about 27 percent in the past four weeks to trade around
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