Examining Polygon’s On-Chain Data
Over the past three months, the fundamental network statistics of Polygon (MATIC) have shown signs of flattening, indicating a potential slowdown in its growth trajectory. Even the captured value of the blockchain has experienced a partial decline in recent weeks. However, with an upcoming major blockchain update in the works, the tide could turn in favor of Polygon in the coming months.
Stagnation in Key Network Metrics
Artemis’ data highlights that several crucial Polygon statistics, such as daily active addresses, have exhibited a lack of significant change over the past three months. Moreover, the daily transaction count has remained relatively stable. While this signifies consistent network activity, it also suggests a possible halt in the blockchain’s growth momentum. Additionally, there has been a minor reduction in fees and revenue associated with the blockchain.
Polygon’s Path Forward: Introducing Polygon 2.0
A few weeks ago, Polygon unveiled its next move in the cryptocurrency space, aptly named Polygon 2.0. This upgrade holds substantial potential and could potentially drive the expansion of MATIC in the upcoming months. Today In Polygon recently tweeted about the various advantages and benefits of this update.
Advantages of Polygon 2.0
- Community Treasury: An innovative on-chain ecosystem fund managed by community governance, designed to provide self-sustainable economic support, reduced reliance on Polygon Foundation, and enhanced decentralization, transparency, and community participation.
The introduction of these features could lead to accelerated growth by attracting new users to the improved and transparent capabilities of the blockchain. Furthermore, the blockchain’s roadmap includes the launch of MATIC’s successor, POL, envisioned as a tool for ecosystem coordination and growth.
Polygon’s Price Outlook
Market sentiment surrounding MATIC has been gradually on the rise. LunarCrush data indicates a more than 25% increase in bullish sentiment around MATIC in the past week. This positive sentiment has been mirrored by increased social engagement, coinciding with a slight price uptick for Polygon in the same period. According to CoinMarketCap, MATIC has experienced a rise of over 1.3% in the last seven days, currently trading at $0.6806 with a market value exceeding $6.3 billion as of the time of writing.
Furthermore, CryptoQuant data suggests a decrease in MATIC’s exchange reserves, potentially indicating an upcoming boost in buying pressure in the altcoin market.
