Polygon (MATIC) Hits 4 Billion Transactions, But Can The Price Recover?
Polygon (MATIC), a leading Ethereum scaling solution, has achieved a significant milestone by surpassing 4 billion total transactions. This rapid growth highlights the network’s growing adoption, but the token’s price remains subdued.
Breakneck Speed: 4 Billion Transactions in Under 4 Years
On May 17th, Polygon shattered another barrier, reaching 4 billion total transactions since its June 2020 launch. This achievement pales in comparison to Bitcoin’s 15 years to reach 1 billion transactions and Ethereum’s near-decade to reach 2.4 billion. Polygon’s meteoric rise signifies the increasing demand for faster and cheaper blockchain transactions.
Active Users on the Rise
The surge in transactions is accompanied by a thriving user base. Since March 19th, Polygon has boasted over 1 million daily active users, showcasing consistent network engagement. Popular dApps like Matr1x (play-to-earn game), Galxe (digital identity network), and EARNM Rewards (loyalty program) are driving user activity.
Active Network, Healthy Ecosystem
The daily transaction chart on the Polygon network showcases consistent activity, with periods of high usage. This robust transaction volume reinforces the argument for MATIC’s price increase, as it indicates a dynamic and engaged network.
Network Growth Continues: More Users, More Transactions
The number of MATIC addresses with non-zero balances is steadily increasing, signifying user base expansion. Additionally, the Polygon network witnesses a continuous rise in unique addresses, reflecting sustained user interest.
Price Woes: Disconnect Between Network Activity and Price
Despite the impressive network growth, MATIC’s price has remained largely stagnant over the past year. While major cryptocurrencies like Bitcoin and Ethereum soared, MATIC remained range-bound between $0.5 and $1. This disconnect suggests that the market might be undervaluing the utility offered by Polygon.
Analyst Opinions: Long-Term Bullish for MATIC
While the current price might not reflect the network’s growth, analysts remain optimistic about MATIC’s long-term prospects. The strong network fundamentals and rising user base indicate the platform’s value proposition. However, investors might need to be patient for significant price appreciation.
MATIC/USD Technical Analysis Hints at a Potential Rebound
Technical indicators like the Ichimoku Cloud suggest a potential price upswing for MATIC. A break above the 0.618 Fibonacci level ($0.80) could trigger a bullish run, with a target price of $0.99. However, key resistance levels at $0.89 and $0.99 could pose challenges.
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