Share:
  • Polygon registered about 6.1 million transactions in a single day on November 16.
  • While Polygon CEO assumed the cause to be a game, the real reason was the Multichain inscription marketplace evm.ink.
  • MATIC price fell by 7% in the past day at the time of writing, hinting towards a potential trend reversal.

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

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

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.

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Crypto market cowers with sell signals after FOMC minutes

Crypto market cowers with sell signals after FOMC minutes

Bitcoin price could make a 5% trip south to the $48,000 psychological level. Ethereum price likely to revisit $2,770, a 5% fall with a sell signal already in play. Ripple price eyes a 7% fall amid growing overhead pressure.

More Cryptocurrencies News

Worldcoin price dips 25% as WLD holders cash in on faded AI narrative

Worldcoin price dips 25% as WLD holders cash in on faded AI narrative

Worldcoin price is down 23% since the Monday peak of $7.9960. WLD could extend the fall 9% to the key Fibonacci retracement level, 61.8% at $5.7330. Invalidation of the bearish thesis will occur if the AI token clears the range high to create a new local top.

More Worldcoin News

Bitcoin price could drop 7%, but MicroStrategy nearly merits S&P 500 inclusion

Bitcoin price could drop 7%, but MicroStrategy nearly merits S&P 500 inclusion

Bitcoin price has managed to climb a commendable distance since October, with the move benefitting MicroStrategy the most, among other investors. The company, having demonstrated strong support for BTC through successive purchases, could soon merit S&P 500 inclusion as it steadily checks the boxes for listing criteria. 

More Bitcoin News

SingularityNET: 15% drop likely for AGIX as multiple on-chain metrics flash bearish

SingularityNET: 15% drop likely for AGIX as multiple on-chain metrics flash bearish

SingularityNET price has dropped almost 12% since rejection from the peak of the market range at the $0.6000 psychological level. AGIX could extend the fall nearly 15% before providing a buying opportunity for late and sidelined investors. A higher high above $0.5999 would invalidate the bearish thesis.

More SingularityNET News

Bitcoin: BTC eyes $60,000 but correction looms

Bitcoin: BTC eyes $60,000 but correction looms

BTC has been moving up only since January 22 but could slip into a consolidation before the next leg up. With the rate at which BTC is climbing after the ETF approval, coupled with strong fundamentals, investors should consider buying the dips before BTC hits $60,000.

Read full analysis

BTC

ETH

XRP