Sandeep Nailwal’s Insight on Potential Benefits of PIP Approval
Sandeep Nailwal has emphasized the advantages that could arise from the approval of the PIP. This development could have significant implications for the Polygon ecosystem.
MATIC’s Positive Performance Indicators
The daily chart for MATIC has shown positive signs, with several key metrics pointing towards bullish trends.
Polygon’s Recent Market Performance
Over the past month, Polygon (MATIC) experienced a notable decline in its market capitalization, causing it to slip to the 13th position among leading cryptocurrencies. However, the approval of Polygon’s latest PIP could potentially reshape its trajectory, and here’s why.
Polygon’s Market Position
According to CoinMarketCap data, MATIC’s price experienced a drop of over 20% within the last 30 days. In contrast, other cryptocurrencies like Polkadot (DOT) and Tron (TRX), which share similar market capitalization, only recorded losses of 11% and 9% respectively.
As of the time of writing, MATIC was trading at $0.5592, with a market capitalization of $5.2 billion.
The substantial price drop led to losses for a majority of investors. Notably, data from IntoTheBlock revealed that over 95% of addresses held MATIC at an average acquisition cost higher than the current token price.
This situation contributed to a noticeable increase in Polygon’s Daily On-Chain Transaction Volume Loss in the past month.
Furthermore, insights from DeFiLlama indicated a decline in Polygon’s Total Value Locked (TVL) over recent months. At present, Polygon’s TVL stands at $1.153 billion.
Exploring Polygon’s Future Plans
Sandeep Nailwal, one of Polygon’s co-founders, shared his perspective on the blockchain’s upcoming direction through a recent tweet. He specifically highlighted POL, which is positioned as the successor to MATIC.
For those unfamiliar, POL aims to offer the benefits of multi-chain staking without the associated risk of restaking. This allows stakers to utilize POL across various chains and roles, potentially leading to greater rewards with their staked assets.
In response to a Twitter query about already staked MATIC, Nailwal mentioned that the ideal scenario would involve a seamless transition to staked POL from staked MATIC with a 1/2-click upgrade process.
MATIC’s Recent Performance and Whales’ Confidence
As the blockchain’s potential future looked promising, MATIC’s daily chart exhibited positive momentum. Notably, MATIC’s supply on exchanges decreased, while the supply held outside of exchanges experienced a slight increase.
The holdings of MATIC by prominent addresses also witnessed a rise, indicative of the trust placed by larger holders. Despite these positive signs, MATIC’s weighted sentiment remained in bearish territory.
