Polygon Price Struggles, But Increased On-Chain Activity May Indicate Rebound for MATIC
Polygon– MATIC has been experiencing price struggles recently, influenced by the overall weakness in Bitcoin (BTC) and the broader cryptocurrency market. Despite this downturn, analysts are noting a significant surge in on-chain activity that might hint at a potential price reversal for MATIC.
Surge in Polygon’s On-Chain Activity
Recent data reveals a notable increase in both daily active addresses and the movement of dormant coins within the MATIC network. According to Santiment, there has been a substantial spike in dormant MATIC coins being transferred. This is measured by the Age Consumed metric, which tracks how long coins have been held before being moved.
What Is the Age Consumed Metric?
The Age Consumed metric combines the number of coins on the move with the duration since their last transfer, providing insights into long-term holder behavior. A spike in this metric can often signal a shift in sentiment among long-term investors, potentially influencing the token’s price.
Increased Active Addresses on Polygon
Santiment also reports a sharp rise in daily active addresses on Polygon. With 3,369 addresses interacting on-chain, this is the second-highest count of the year. Such a spike, combined with the increased Age Consumed metric, could be indicative of a significant change in market dynamics.
Implications of On-Chain Activity for MATIC
Historically, an increase in Age Consumed has been associated with notable changes in a token’s price. For Polygon, the Age Consumed measure recently spiked to 69 billion MATIC while the price saw a drop to around $0.58, marking a 14% decrease.
Opportunity Amidst Market Weakness
Despite the current price dip, these on-chain indicators suggest that investors may perceive MATIC’s lower price as a buying opportunity. The surge in on-chain activity might be a precursor to a potential rebound for Polygon.
FAQs
What recent trends are observed in Polygon’s (MATIC) on-chain activity?
Recent trends show a significant spike in both dormant MATIC coins being moved and an increase in daily active addresses. The Age Consumed metric, which tracks the movement of long-held coins, has seen a notable rise. Additionally, the number of daily active addresses reached the second-highest count of the year, suggesting heightened network activity.
What does the Age Consumed metric indicate about Polygon’s (MATIC)?
The Age Consumed metric measures the movement of dormant tokens by calculating the product of the number of coins moved and the time since their last transfer. A spike in this metric suggests that long-term holders are moving their assets, which historically has been associated with significant price changes for the token.
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