In recent times, the cryptocurrency ecosystem has witnessed a series of market fluctuations that have left many investors in a state of uncertainty: despite the price of the crypto Polygon MATIC being trapped in a bear trend, recent developments suggest that a possible reversal might be on the horizon. The increase in onchain activity on the Polygon network could be the catalyst for this change.
Polygon MATIC: a price context in difficulty for the crypto
The market of criptovalute is notoriously volatile, and Polygon MATIC is no exception. After reaching impressive peaks in 2021, the price of Polygon MATIC underwent a prolonged correction phase, aligning with the bear trend of the general market.
At the time of writing this article, the price of Polygon MATIC remains in a consolidation phase, with traders and investors looking for signs of a potential recovery.
A key indicator that could suggest an upcoming trend reversal for the price of Polygon MATIC is the increase in onchain activity. Onchain activity refers to the volume of transactions that occur directly on the Polygon blockchain, without going through intermediaries or centralized exchanges.
This increase could indicate a growing interest from users and developers, which is generally seen as a positive signal for the long-term health of a cryptocurrency.
Onchain activity is often an early indicator of the future direction of a cryptocurrency. When onchain activity increases, it means that more people are using the network, which can translate into greater demand for the native token, in this case MATIC.
An increase in onchain activity could be seen as a sign of confidence from users in the Polygon network, and it could suggest that the price of Polygon MATIC is about to exit its bear phase.
The Onchain metrics of Polygon
According to recent data, the Polygon network has seen a significant increase in the number of daily transactions and active addresses.
These increases can be attributed to several factors, including the growing adoption of decentralized applications (dApp) on the Polygon network and the growing interest of developers in the scalability offered by this Layer-2 solution.
In particular, the number of daily transactions on the Polygon network has surpassed that of the main Ethereum network on several occasions, indicating a growing preference for the speed and reduced cost of transactions on Polygon.
Furthermore, the increase in the number of active addresses is a signal that more and more users are choosing Polygon for their onchain activities, thus increasing the demand for MATIC.
Another factor that could contribute to the increase in onchain activity on the Polygon network is the growing number of dApps and DeFi (decentralized finance) projects that are migrating or being born directly on this platform. These applications are attracting an increasing number of users, who in turn increase the traffic on the network and the demand for the MATIC token.
The DeFi ecosystem on Polygon is rapidly becoming one of the most vibrant in the world of cryptocurrencies, with numerous projects leveraging the scalability and efficiency of the network to offer innovative financial services. This increase in activity could soon be reflected in the price of Polygon MATIC, especially if users continue to prefer this network over others.
Possible future scenarios for Polygon MATIC
Despite the positive signals, it is important to note that the cryptocurrency market is inherently unpredictable. However, the increase in onchain activity on the Polygon network could represent a turning point for the price of MATIC. If the activity continues to grow, and if the network continues to attract users and developers, we could witness a significant trend reversal in the price of Polygon MATIC.
On the other hand, if onchain activity were to slow down, or if the broader cryptocurrency market were to face further bear pressures, it is possible that the price of Polygon MATIC could remain stuck in its current consolidation phase.
In summary, the increase in onchain activity on the Polygon network could be a promising signal for an upcoming trend reversal in the price of MATIC. While the signals are encouraging, investors should continue to closely monitor the market and consider all factors before making financial decisions. The future of Polygon MATIC could be bright, but as always in the world of cryptocurrencies, uncertainty remains high.
