Despite the recent decline in MATIC’s price, Polygon has experienced a notable increase in on-chain activity, signaling potential positive shifts for the network.
Increased On-Chain Activity
Data reveals that Polygon has seen a significant uptick in on-chain metrics, even as the broader cryptocurrency market faces bearish trends. According to Santiment, there has been a marked rise in the movement of dormant MATIC coins. This is captured by the Age Consumed metric, which tracks how many long-held coins are being transferred across addresses and measures the impact of these movements on the network.
Key Metrics:
Age Consumed: This metric, which multiplies the number of coins on the move by the duration since their last transfer, has spiked to 69 billion MATIC. This suggests an increased movement of long-held tokens, typically indicating a shift in sentiment among long-term holders.
Active Addresses: Santiment’s data indicates that Polygon’s daily active addresses reached 3,369, marking the second-highest daily count of the year. IntoTheBlock also reported a surge in active addresses, with over 1,000 new addresses created on August 27.
Market Implications
Historically, spikes in the Age Consumed metric and increases in active addresses have often preceded significant changes in a token’s price. Despite MATIC’s price dropping by 14% to around $0.58, the rise in on-chain activity could suggest that investors are viewing the current dip as a buying opportunity.
Analysts point out that although MATIC is currently struggling amid a broader market downturn, the increased on-chain activity might signal a potential reversal in sentiment. The heightened movement of dormant coins and new active addresses could indicate growing interest and potential accumulation, which may foreshadow future price recovery.
Conclusion
Polygon’s recent on-chain activity highlights a growing engagement with its network, even as MATIC’s price continues to face challenges. The increased movement of dormant tokens and a surge in active addresses may be early indicators of a positive shift for Polygon, suggesting that a market reversal could be on the horizon despite the current price dip.
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