Over 1 million MATIC burnt after Polygon noted 6 million transactions in a day; MATIC price sees red

MATIC price has been observing a decline following the recent rally, which brought the altcoin to a five-month high. Interestingly, the price action does not reflect the events that transpired on the parent chain, as Polygon noted not only record transactions but also the burning of over 1 million MATIC in a day.

Polygon transactions mark a new high

Polygon Chief Executive Officer (CEO) Sandeep Nailwal posted a rather astonishing tweet on Thursday, discussing some rather uncommon developments on the network. The number of transactions conducted on the network crossed 6 million in the past 24 hours, marking a two-year high.

The staggering number of transactions resulted in the network observing a surge in fees as well as the total number of MATIC tokens burnt. According to the Polygon network analytics site PolygonScan, nearly 806,832 MATIC have been burnt in the past 24 hours. However, per the Polygon CEO, the network noted more than 1 million MATIC tokens being burnt in the last 24 hours.

Polygon transactions

While the reason behind the stark increase is unknown, the project’s CEO, Nailwal, assumed that the launch of a new game titled Baby Shark could have caused the surge. However, according to the community, the rise in transactions could have been the result of evm.ink.

evm.ink is a multichain inscription marketplace that allows for the development of inscriptions on the Polygon chain. The founder of the protocol, Shardul Mahadik, took to X, formerly Twitter, to boast about this achievement, which surged the gas fees to almost 4630.11 Gwei.

MATIC price is emerging as a major competitor

The likely path that MATIC price will take from here on is bearish since the 7% fall in the last 24 hours has resulted in the invalidation of the $0.884 support level. Further decline would place the next possible target of the altcoin at $0.742 below the $0.800 mark.

The receding green bars on the Moving Average Convergence Divergence (MACD) also hint at the same bullishness waning. Thus, a bearish crossover is not completely out of the realm of possibility and would confirm the bearish downturn.

MATIC/USD 1-day chart

However, if the broader market cues weigh heavier on the rest of the weekend’s move, MATIC price could see some change in the momentum. Reclaiming the $0.884 level as support would invalidate the bearish thesis and set Polygon up for a run-up to $1.000.