MATIC price declines, on-chain activity fails to catalyze recovery in Polygon’s token
- MATIC network has observed a spike in address activity, trade volume and whale transactions over the past four days.
- The rising on-chain activity failed to catalyze a recovery in Polygon’s native token, MATIC price dropped to its lowest level since June 10.
- MATIC price is in a downward trend and it remains to be seen whether developments in Polygon will fuel a bullish sentiment among holders.
Polygon’s MATIC token witnessed a spike in user activity since Thursday, September 7. There has been a steady increase in metrics that measure user activity: Daily active addresses, volume, whale transfers greater than $100,000 and $1 million.
Despite the activity from users, MATIC price continued its downward trend, declining to its lowest level since June 10.
Also read: Shiba Inu price lags behind despite massive spike in Shibarium transactions and SHIB token burn
MATIC users increase activity in Polygon’s native token
On-chain metrics are considered as reliable indicators of the direction of an asset’s price trend in the short-term. Typically, rising activity is considered a sign of upcoming volatility in an asset. Despite this, the rise in daily active addresses, volume, and whale transaction count, have failed to stir a recovery in MATIC.
As seen in the chart below, from crypto intelligence tracker Santiment, since September 7, there has been a spike in daily active addresses and volume. Previously, as seen between September 1 and 4, the rise in the two metrics fueled a recovery in MATIC price.
 [11.00.51, 10 Sep, 2023]-638299222136824424.png)
Daily active addresses and volume (MATIC)
Large wallet investors are making moves, without causing a stir in MATIC prices. Whale transfers greater than $100,000 and $1 million have both noted an increase in frequency between September 7 and 10.
 [11.04.23, 10 Sep, 2023]-638299222523974211.png)
Whale transaction count and MATIC price
At the time of writing, MATIC price declined to $0.5165, the lowest level since June 10 intraday low of $0.5088. Polygon’s native token has yielded 2.61% intraday losses and 2.88% losses over the past week.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Like this article? Help us with some feedback by answering this survey:
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.
