- While Polygon’s price has barely moved in the last month, its on-chain metrics have been soaring, hitting 400 million unique addresses, with 15.2 million new users in January.
- Analysts believe that Polygon needs to stay above $0.75, a price level that has provided formidable support for MATIC in the past few months.
Polygon has established its position as the leading Ethereum scaling solution, and while this has not necessarily resulted in a price surge, the layer 2 network is recording impressive adoption numbers. Polygon recently hit 400 million unique addresses, and in January, it recorded over 15 million new unique users. Its price remains below $1, but analysts believe a lift-off is due.
At press time, MATIC was trading at $0.788. It has barely moved in the past day, where it gained a measly 0.17%. In the past seven days, the price has dipped by 2.37% and in the past month, it has only lost 4.23%.
MATIC remains firmly cemented in the top 20 cryptos, and while it has lost its lead over Chainlink and Polkadot, its $7.57 billion market cap places it 14th on the list. In the past day, it recorded $207 million in trading volume, and while not the most impressive (and barely changed in the last 24 hours), it’s still in the top 20 in the market and ahead of Dogecoin and Litecoin.
But where it disappoints in price movements, Polygon makes up for it in on-chain metrics and adoption. On the latter, the network recently hit 400 million unique addresses for the first time, making it among the most widely used blockchains in the world. This is a great leap for a network that just two years ago had 136 million users.
The daily address increases have decelerated over time and, in the past week, have averaged just over 200,000. At some point in early 2023, the network was recording over one million new unique addresses.
In January, the network brought in 15.2 million new users, a remarkable achievement that wasn’t reflected in the price. Since January 1, the price has dipped from $0.953 to end the month at $0.813 in an underwhelming start to the new year for the entire industry.
What Next for Polygon (MATIC)?
Technical indicators for MATIC remain bearish. The crypto has been trading below its 50-day and 200-day simple moving average, which usually points to bears having control over an asset. Its relative strength index hovers around the midpoint and offers little insight into what’s next.
This hasn’t stopped analysts from making bold predictions. Dutch analyst Michaël van de Poppe believes MATIC is headed toward the $1.25-$1.50 region, noting that the Polygon ecosystem has absorbed liquidity quickly.
Another analyst pointed out that MATIC is zeroing in on an ascending triangular pattern, which points to a breakout pattern with higher highs and a rising resistance level in the trading world. Known on social media as Crypto Rover, he told his 668,000 X followers that he expects MATIC to gain by 5x-10x.
I think that $MATIC will be a safe 5-10x for the next bull run.
I’m holdings lots of it. pic.twitter.com/7q4h99OaMN
— Crypto Rover (@rovercrc) February 6, 2024
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