- The Polygon network exceeded 1 million active addresses per day for 65 consecutive days.
- TVL and DEX trading volumes have declined.
polygon [MATIC] Over the past few months, we have continued to attract a large number of users, and our ecosystem has been able to not only attract users but also retain them.
Increased Polygon Activity
Recent data shows that the Polygon network maintained a record of more than 1 million active addresses per day for 65 consecutive days.
Source: X
Nevertheless, when it comes to DeFi, Polygon has struggled: overall, the DEX (decentralized exchange volume) has fallen from $320 million to $50 million in the past few weeks.
Additionally, Polygon’s TVL (Total Value Locked) dropped significantly from $1.2 billion to $980 million.
Source: Artemis
These factors have had a significant impact on the revenue generated by the Polygon network: AMBCrypto’s analysis of Token Terminal data revealed that revenue has increased by 42% over the past month.
Similarly, development activity has fallen 14% over the past 30 days.
Source: TokenTerminal
If the number of code commits on the network continues to decline, this could have a significant negative impact on the Polygon network.
The token has also not fare well in terms of price volatility: since April 9, the price of MATIC has fallen, making multiple new lows and highs.
This pattern suggests that a bearish trend has been established. Despite multiple attempts by MATIC to break the trend, the price remained stuck between $0.7802 and $0.6346 levels.
The price will need to retest the $0.7802 resistance level and weaken it before a reversal can be seen.
During this period, the Relative Strength Index (RSI) has fallen significantly, indicating that the bullish momentum around MATIC has weakened.
On the positive side, CMF (Chaikin Money Flow) increased, indicating a surge in funds flowing into MATIC.
At the time of writing, the trading price of MATIC is $0.7191.
BTC/USD daily chart. Source: Trading View
Realistic or not, MATIC’s market capitalization in ETH is as follows:
Owner is green, token is red
MATIC’s network growth has also slowed in recent days, indicating less interest from new addresses.
The MVRV ratio has also risen, suggesting that most holders are making profits and may have an incentive to sell their tokens in the future.
Source: Santiment
