Recent developments in the cryptocurrency market spotlight Polygon’s native token, MATIC, indicating a potential revival. Analysts have observed a significant rise in active addresses and reactivated dormant assets. Blockchain data analysis platform Santiment reported an uptick in onchain activity on Polygon as of August 28.
What Does the Data Reveal?
A graph shared on social media platform X shows an increase in dormant token movements, coinciding with the second-highest number of Polygon addresses interacting with the network this year. The Santiment team stated that this surge in onchain activity could signal a potential MATIC reversal.
Despite the recent increase, Polygonscan data indicates a longer-term decline in address activity since late July, dropping from 1.6 million to around 700,000 by the end of August. Daily transactions have also decreased from five million in March to approximately three million by the end of August.
How is MATIC Performing?
MATIC’s price spiked to a two-month high of approximately $0.58 on August 25 but quickly fell back, dropping 24% to a 10-day low of $0.437 by August 29. CoinGecko reports that MATIC is down 85% from its all-time high of $2.92 in December 2021.
Meanwhile, Binance announced support for Polygon’s upcoming network token transition from MATIC to POL, scheduled for September 4. However, on August 24, Polygon’s community Discord channel was compromised, endangering several blockchain projects’ servers.
Key Takeaways
- Polygon’s native token MATIC may soon revive.
- Significant rise in active addresses and dormant assets observed.
- Polygon remains at bear market levels despite increased activity.
In conclusion, while recent activities suggest a potential for MATIC’s revival, the market data presents a mixed outlook. The upcoming token transition and security challenges pose additional factors to consider in the coming weeks.