MATIC daily volume raises concern among investors, plunges in February 2022
- Polygon daily volume witnessed an impressive spike in January 2022 before plunging in February.
- The daily volume in February 2022 hit $63.97 million, lower than the average of the past two months.
- Analysts are bullish on the MATIC price rally as the altcoin posts double-digit gains overnight.
The NFT ecosystem has exploded with a consistent spike in daily trade volume on OpenSea, the peer-to-peer marketplace. Proponents have witnessed a drop in Polygon’s trade volume, believing this could fuel a bearish outlook among investors.
Polygon daily volume plunges despite MATIC price rally
As February 2022 draws to a close, analysts have noted a significant drop in the daily volume of MATIC network. Polygon’s growing trade volume on OpenSea took a hit in February 2022, noting a significant drop.
Experts believe that OpenSea’s Polygon statistics in December 2021 and January 2022 were impressive. This fueled a bullish outlook among investors toward MATIC price.
The total trade volume for the month of February 2022 hit $63.97 million; it failed to sustain the momentum of the past two months. The downtrend in MATIC price started on February 14 and continued for the last two weeks of the month.
The overall NFT sale in February dropped significantly compared to January 2022.
MATIC plays a significant role in the Web3 ecosystem. The dropping daily volume on OpenSea could be attributed to reducing demand for the Ethereum scaling solution among investors. As one of the most popular and viable scaling solutions, MATIC’s demand and utility plays an important role in fueling Ethereum adoption.
Analysts have evaluated the MATIC price trend and predicted a continuation of the altcoin’s rally. MATIC price recovered from the bloodbath and posted 12.4% gains over the past 24 hours.
FXStreet analysts have predicted that MATIC’s losses could double if the Russian-Ukraine war rages on.
$MATIC could double its losses later in the US session if Russia keeps attacking into the night: https://t.co/1pjccRLlkS#Polygon shredded 12% in value during European trading hours, could extend losses down to $1.19 or even $1.06 during US sessionhttps://t.co/mEUjUSoAyf pic.twitter.com/2pX74I5GmO
— FXScrypto (@FXScrypto) February 24, 2022
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
