Polygon (MATIC) seems to be failing to meet expectations compared to the wider marketwhere most of the attention is directed at others major cryptocurrencies with a larger market cap. Despite this muted price action, the Polygon network has recently experienced a significant enhance in activity, reaching its highest levels in over a year. This noticeable enhance in activity is largely attributed to latest ads regarding the migration of Polygon’s MATIC token to fresh POL tokens.
Polygon network activity reaches annual peak
According to on-chain data from Santiment, the share of addresses on the Polygon network has skyrocketed following the announcement of the token migration. This enhance was highlighted by Santiment’s 24-hour Busy Addresses metric, which tracks the number of network addresses that have sent or received transactions in a 24-hour period. Notably, this surge in activity saw the metric surpass 4,200 addresses over the weekend.
A deeper analysis of the on-chain data reveals that this growth represents a significant departure from the previous trend. Daily activity has was constantly falling since March. In fact, the day before the spike, the busy addresses metric recorded fewer than 1,500 busy addresses. This keen enhance underscores the impact of the token migration news, indicating renewed interest and engagement among some Polygon network participants, which contrasts sharply with the previous downward trend in activity.
MATIC Price Analysis
At the time of writing, Polygon (MATIC) is trading at $0.534. The cryptocurrency is currently struggling with a resistance level of around $0.55, a barrier that bulls have been unable to break through in the last 24 hours. This resistance comes after a bullish price move from a yearly low of $0.4313 that began on July 6, representing a 27.5% enhance to $0.55.
Looking at the broader time frame, this price point has consistently been a powerful resistance level reaching $0.57. MATIC has I have made many attempts to break through this level since the last week of June. According to data from IntoTheBlock, there are currently 19,450 addresses holding a total of 454.38 million MATIC tokens at an average price of $0.57. This concentration of holdings around the $0.57 price level likely explains the resistance, as many addresses are likely selling after the breakeven point, thus putting downward pressure on the price.
MATIC number of profitability is currently the lowest among the major cryptocurrencies, with just 30,100 profit addresses. This number represents less than 5% of all addresses holding MATIC. However, this could change very quickly after the mainnet update.
The upgrade of the main network from MATIC to POL is scheduled for September. expectancy These events could create significant buying pressure on MATIC shares, potentially improving profitability for stock holders.
Featured image created with Dall.E, chart from Tradingview.com
