Polygon’s MATIC has seen a dramatic increase in active addresses, signaling heightened interest that could be a precursor to a price surge. Over the past 30 days, active addresses have swelled by nearly 60%, correlating with a price hike from $0.83 to $1.14. Despite this uptick, there has been a recent plateau in activity, historically a sign of impending price stability or correction.
Growth in Active User Base
The surge in active users of the Polygon network is noteworthy, with the count of active MATIC addresses jumping from 10,439 to 15,708 within a month. This rise accompanied a robust 37.35% increase in its market price, though the digital asset has yet to revisit its April 2023 high of $1.14.
Trends and Price Movements
The price trajectory of MATIC is closely intertwined with Ethereum‘s, often reflecting a correlation coefficient above 0.8. Recently, this has intensified, with the correlation elevating from 0.5 to an impressive 0.95. Although MATIC’s price has not soared as dramatically as Ethereum’s in the past year, its strong correlation suggests potential for significant growth.
Given the tight linkage between MATIC and Ethereum, and with Ethereum’s price currently on an upward trajectory, expectations for MATIC’s performance are optimistic. While MATIC’s growth has lagged Ethereum’s, the historical pattern indicates that a catch-up in its valuation is plausible.
Despite the recent pause in activity, the rising user engagement and price correlation with Ethereum offer a promising outlook for MATIC. However, investors are reminded of the cyclical nature of the crypto market and the potential for both upward trends and corrections.