Polygon MATIC: Is It Undervalued?
Polygon (MATIC), a blockchain protocol experiencing significant growth and activity, hasn’t seen a corresponding increase in its native token’s price, leading to discussions about its potential undervaluation.
MATIC’s MVRV-Z Score
Based on Santiment’s 5 June data, MATIC’s MVRV-Z score was low, indicating it was in an underbought zone.
Is MATIC Underrated?
Over the past month, MATIC’s price has shown a noticeable downward trend, declining from $0.99 to $0.88, raising concerns among investors and analysts.
- MATIC’s trading volume also fell, suggesting reduced market participation and interest in the token.
- The transaction count of MATIC decreased, indicating reduced activity involving the token.
Despite the increase in activity on the Polygon protocol, the revenue generated during this period fell, raising questions about the sustainability and profitability of the ecosystem.
State of the dApps
The surge in activity on Polygon is attributed to the success of certain decentralized applications (dApps) on the network, particularly QuickSwap.
- QuickSwap experienced a surge in unique active wallets, an increase in trading volume, and the number of transactions, showcasing its ability to attract users and provide valuable services.
- However, not all dApps on the Polygon network have seen significant growth, as evidenced by an exploit on wDAO EON, a protocol on the Polygon network, reported by PeckShield, a crypto security firm.
Security vulnerabilities and exploits can negatively impact user sentiment and confidence in the protocol, potentially hindering its long-term growth and causing concern among investors and users.
