- MATIC transaction surged considerably, and accumulation also increased.
- NFT space witnessed decline and market indicators were bearish.
Polygon [MATIC] witnessed a massive surge in transactions as the metric crossed $40 million in value on 24 March. MATIC was the only top-10 crypto that registered these numbers. Apart from Polygon, Fetch [FET], and The Sandbox [SAND] registered similar growth.
🐳 #Altcoins have lit up with several transactions among the biggest of the year for their respective networks. $MATIC and $FET have both seen a transaction valued at over $40M on their networks. Watch $MANA, $DIA, $IMX, and $SAND after their big whale moves as well. 👀 pic.twitter.com/8zzF8TxqhG
— Santiment (@santimentfeed) March 23, 2023
Read Polygon’s [MATIC] Price Prediction 2023-24
It was also interesting to note that MATIC accumulation by whales was on a rise. Santiment’s chart revealed that MATIC’s supply held by top addresses went up over the last week, reflecting the investors’ confidence in the token.
Source: Santiment
Polygon gains in popularity
Not only did whales accumulate more MATIC, growth was also noted on other fronts. For instance, Dune’s chart indicated that MATIC’s unique users were on an increasing trend, indicating more usage and adoption of the network.
Though there were several reasons for this growth, one of them can be attributed to the recent partnership of MATIC with Immutable, a leading Web3 gaming platform.
Source Dune
A quick overview of Polygon’s NFT space
While the number of unique addresses was rising, a decline was registered in NFT sales. According to CRYPTOSLAM’s chart, MATIC’s NFT sales volume declined by over 38% in the last seven days. Not only that, but after spiking during late February 2023, MATIC weekly volume on Polygon marketplaces declined sharply.
Source: Dune
Despite the decline in the NFT ecosystem, Polygon Daily, a popular Twitter handle that posts updates about the network’s development, tweeted about the most traded NFT collection on OpenSea. As per the tweet, CollectTrumpCards once again topped the list, followed by The Sandbox and Lens Protocol.
Most-traded @0xPolygon NFT Collections On OpenSea Last 7 Days
🥇 @CollectTrump
🥈 @TheSandboxGame
🥉 @LensProtocol@AlienApeIC@MetaworldCat@12am@VoxiesNFT@0xSunflowerLand@CyberKongz@CrossTheAges@Opensea #POLYGON $MATIC pic.twitter.com/Io0uqgBfMt— Polygon Daily 💜 (@PolygonDaily) March 23, 2023
Other metrics looked decent
Things were looking pretty good for MATIC in terms of its on-chain performance. For instance, MATIC’s exchange reserve decreased, suggesting less selling pressure. The token’s supply outside of exchanges also increased, which is a typical bull signal.
Thanks to the massive surge in transactions, MATIC’s network growth remained high last week, indicating that more new addresses were used to transfer MATIC. Additionally, more tokens were transferred among multiple addresses, which was evident from looking at MATIC’s spiking velocity on 21 March.
Source: Santiment
A bear takeover?
Though the metrics were fine, MATIC’s price action turned bearish lately. As per CoinMarketCap, the token’s price declined by over 1.8% in the last 24 hours. At the time of writing, it was trading at $1.11 with a market capitalization of more than $9.6 billion. Polygon’s daily chart also gave a bearish notion and suggested a further price decline.
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The MACD displayed the possibility of a bearish crossover. MATIC’s Relative Strength Index (RSI) registered a slight decline, which was bearish. The Bollinger Band’s findings indicated that MATIC’s price was in a less volatile zone, further decreasing the chances of a northbound breakout in the near term.
However, the token’s Money Flow Index (MFI) remained bullish, as it was moving above the neutral mark. Combining that with the upcoming zkEVM launch, the possibility of a trend reversal can’t be ruled out.
Source: TradingView