Polygon [MATIC] reclaimed its position as the 10th largest cryptocurrency in the world in terms of market capitalization by flipping Solana [SOL]. Thanks to MATIC’s recent price action, which helped the network once again enter the top 10 clubs.
CoinMarketCap’s data revealed that MATIC’s price surged by more than 8% in the last 24 hours, and at the time of writing, it was trading at $1.08 with a market capitalization of over $9.4 billion.
These might have played a role
The credit for this price surge can be given to the recent developments that happened in the Polygon ecosystem. For instance, ZenGo Wallet partnered with Polygon to make it safe for the Polygon NFT community to store assets in the first non-custodial wallet with no seed phrase vulnerability.
This partnership will make the Polygon NFT space more secure for its users. However, despite this, Santiment’s chart revealed that the total NFT trade counts and trade volume in USD in the Polygon network registered a decline over the last week.
Interestingly, a few days ago, Polygon managed to outperform Ethereum in terms of daily active addresses, as it ranked second on the list. This was a commendable accomplishment because it reflected the increased number of network users.
Fuel for this surge
A look at Polygon’s on-chain metrics revealed quite a few factors that have fueled MATIC’s latest price pump. For example, MATIC’s net deposits on exchanges were low compared to the 7-day average, suggesting less selling pressure.
MATIC’s 1-week price volatility also registered an uptick in the last few days. Furthermore, MATIC’s MVRV Ratio also went up considerably over the past week, which was a development in the buyers’ favor.
Nonetheless, the token’s network growth went down sharply on 27 January, which might be troublesome for the blockchain.
Source : ambcrypto