MATIC price has not been able to regain the green color on its chart, causing fear for investors. The price action of the Polygon token remains headed south, while the network activity of this PoS blockchain gains upward momentum.
A closer look at MATIC's on-chain activity will shed light on what is preventing the token's value from increasing.
Polygon is seeing increased network activity
Popular X (formerly Twitter) account Today In Polygon, which posts updates related to the blockchain ecosystem, recently pointed out that Polygon's daily active users increased by 10% in the past 7 days. .
Source: Today In Polygon
Thanks to the increase in the number of users, the blockchain's daily transactions also spiked by 20% during the same period, indicating more vibrant network activity.
According to Artemis data, not only did Polygon's network activity increase, but a similar upward trend was also observed with blockchain revenue and DEX volume. However, Polygon's total value locked (TVL) has turned steeply south.
Source: Artemis
MATIC's performance is uneven
Like TVL, MATIC price also decreased over the past week. At the time of writing, MATIC is down more than 5% and is trading at $0.526 with a market capitalization of over $4.9 billion, making it only the 13th largest cryptocurrency.
Over the past week, MATIC's social volume remained high, but most mentions were pessimistic. Indeed, Polygon's Weighted Sentiment has dropped in recent days.
Source: Santiment
CryptoQuant's data reveals that investors are actually selling their holdings, adding to MATIC's bearish trend. Notably, reserves on the exchange are increasing, meaning it is under selling pressure at the time of writing.
However, while selling pressure is high, this scenario could change if MATIC's stochastic indicator enters the oversold zone. This could reverse the trend and thereby support MATIC price.
But other metrics are still down. Notably, MATIC's Binance Funding Rate is green, meaning derivatives buyers are buying at lower prices at the time of writing. Its MVRV rate is also relatively low.
However, #MATIC 's Network Growth Rate is high, indicating that more new addresses have been created to transfer tokens.
Source: Santiment
https://tapchibitcoin.io/gau-san-lung-matic-bat-chap-no-luc-pos-cua-polygon.html
