Ethereum Layer 2 Network’s Performance
The Ethereum layer 2 network, including MATIC, has faced a challenging year, closely following the overall market trends among altcoins. Over the last 24 hours, MATIC has experienced a 1.08% decrease in value, and it’s down by 5.95% over the past month.
Bulls Celebrate Renewed Activity
Bulls in the MATIC market have been striving to sustain the upward momentum, pushing the token from $0.48 to above the $0.50 threshold. Recent days have witnessed several metrics pointing to increased bullish activity, including trading volumes and network activities.
- The past 24 hours have seen an 18% surge in trading volume across major exchanges, ranking MATIC 13th in this metric among major cryptocurrencies.
- On September 22, Polygon recorded a significant milestone with 4,621 transactions, marking its highest daily activity in 50 days.
With the growing demand for the token, bulls are eagerly anticipating further increases to counteract any potential sell-off resulting from the reported token transfers to exchanges. However, it’s important to note that network activity hasn’t reached the same levels as it did on September 22, failing to consistently surpass the 4,000 daily transaction mark in subsequent days.
The network faced uncertainty when Binance announced its intention to delist Polygon’s non-fungible tokens from its marketplace on September 26. In response, MATIC holders transferred over 3.5 million tokens to exchanges, sparking concerns of a potential sell-off. Such transfers to exchanges typically signal an intention to sell when market conditions are favorable. If the network fails to maintain its bullish momentum, there could be a slight dip below the $0.50 mark.
Q3 Developments Support Bullish Pressure
Polygon, like other Ethereum scaling solutions, has introduced significant upgrades in recent months. On August 11, the company announced the release of the zkEVM testnet, a collaborative effort between Polygon Labs and Immutable. This release is seen as a pivotal step for the blockchain, promising scalability, improved security, and reduced costs.
Another noteworthy rollout from Polygon is the Lufthansa Uptrip Loyalty Program, designed to reward users with NFTs for their flights. This program offers users specific collections that, when completed, unlock unique and personalized rewards, including business vouchers and free miles.