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- Polygon’s network activity has surged, marking increased volume and active addresses.
- This network development signals a healthy network and paints a bullish future for the project’s native token, MATIC.
Analysis from crypto market analysis firm Santiment has shown an uptick in network activity. This rise indicates renewed interest in the network and native token, by market players. Recent data shows that the network has began the month with an increase to 224,000 in active addresses. This is a key indicator of usage and adoption of the network by industry players.
This increase has coincided with an uptick in the network’s native token MATIC rise in volume. Primarily, this is because the tokens have been involved in the transactions on the network. In the past 24 hours, volume has increased to 491.79 million. With increased demand for the token, prices have also surged in the same period. At the time of press, MATIC has gained nearly 3 percent to trade at $0.7784.
While most assume that the price rise is due to the organic demand for the token, CryptoQuant analyst Joao Wedson disagrees. He notes that MATIC is not experiencing real demand from the market. He further explains that the price gain coincides with a significant rise in reserves held by exchanges. Wedson notes;
An intriguing phenomenon stands out—the apparent decoupling between the inflow and outflow on exchanges and the public interest in Polygon. While reserves on exchanges reach new heights, there seems to be no clear correlation with a proportional increase in public interest or organic demand.
Recent data shows that exchange outflows stand at 107,000, higher than inflows. Outflows on the other hand account for 75,000. This data clearly shows that investors are keener on accumulation than selling. Outflows suggest a bullish outlook for the altcoin price, with the reverse suggesting a bearish outlook.
Speaking on this narrative, Wedson stated;
A theory gaining strength is the possibility that the recent surge in Matic is closely linked to the accumulation of coins by exchanges. This suggests that the upward momentum in price may have been driven more by internal exchange strategies than by a substantial increase in demand from common investors.
On top of network development, Polygon co-founder Sandeep Nailwal has celebrated Unique gaming addresses on the network POS increasing 80 percent over the last 30 days.
Unique gaming addresses on @0xPolygon POS have increased 80% over the last 30 days. pic.twitter.com/FLniowc46Y
— Sandeep Nailwal | sandeep. polygon 💜 (@sandeepnailwal) November 30, 2023
In a separate announcement, Polygon has recently confirmed the integration into its MyLugano crypto payment app, enhancing its cryptocurrency capabilities. This strategic integration, announced on November 22nd by Polygon Labs, marks a pivotal step in Lugano’s journey to become a global blockchain hub. The upgraded MyLugano app now boasts multichain digital wallets, supporting an array of cryptocurrencies with plans for continuous expansion.
Read More: Polygon Village Relaunches with $110 Million in MATIC Grants, Mentorship, and Ecosystem Support
