- MATIC’s rally and partnerships have been impressive, and on-chain activity indicates additional growth.
- Polygon’s daily active users have soared 200 percent between August and October.
With a 15 percent rise in the last 24 hours, Polygon (MATIC) is among the biggest gainers in the crypto market today. Traders should note that the last time MATIC recorded this bullishness, it sustained this rally until it posted 13,000 percent gains.
Before showing small strength following the formation of a golden cross on the technical charts on October 20, MATIC had been trading sideways for over three months. Analysts suggest that MATIC’s breakout from trading sideways was due to the large volume of MATIC trading by crypto whales and some strong fundamentals.
Following Meta’s announcement that it’s Instagram NFTs would base on the Polygon network, MATIC’s price surged by over 20 percent within 24 hours. Its new price of $1.06 after the spike was a first in 4 months. Hence, it is unsurprising that MATIC trades in the overbought region following the massive spike. Currently, MATIC’s rsi stands at 75.
The fundamentals supporting MATIC’s rally
In the last 12 months, Polygon has partnered with many businesses across various sectors. Some notable names among those businesses include Robinhood, Disney, and Starbucks.
However, its newest collaborations with JPMorgan and Instagram have caused many industry analysts to predict that the network’s native token will rise by about 200 percent. Besides partnerships, it is also essential to analyze the blockchain’s adoption through network usage.
Four metrics used to analyze any blockchain’s adoption include the number of transactions, daily active users, and total locked value. Since August, there has been a 200 percent increase in Polygon’s daily active users and fees.
Polygon’s daily active users were 737,815 on October 13 compared to 248,853 on August 5, 2022. Analysts claim that the success of the Reddit NFT avatar launch was responsible for this spike in the number of daily active users. Furthermore, whales have also contributed to MATIC’s recent bullishness.
Data from the on-chain analytics platform, Santiment, revealed that MATIC whales (holders with more than 10 million MATIC tokens) increased their MATIC holdings significantly last month. The data also showed that yesterday was the first time since February that there would be multiple $100k+ MATIC transactions.
Polygon’s total value locked surpasses $1 billion
Analysts use the total value locked (TVL) metric to assess the market’s bias about a specific blockchain. For example, Polygon’s TVL uses the MATIC blockchain to lock funds across several DeFi platforms on the network.
However, a rising TVL doesn’t indicate that the network or its related assets are becoming bullish. It only means the network is growing or new liquidity is entering it. MATIC, Avalanche (AVAX), and Arbitrum are the only three protocols with more than $1 billion in TVL.
However, three others with a higher value in TVL (more than $5 billion) are Binance Chain, Tron, and Ethereum. In addition, Recent Token Terminal data revealed that Polygon and Fantom are the two blockchains with positive TVL values on the 1-day and 7-day charts.
Credit: Source link