Polygon’s network activity steals the show; will MATIC come through?

Solana was still ahead of Ethereum and Polygon in terms of daily transactions.
Though MATIC’s daily chart was red, a few market indicators and metrics looked bullish.

Polygon [MATIC] has taken the front seat in terms of network activity as it outperformed the rest. Not only was it able to beat all the popular L1s but also the L2s in terms of a key metric, reflecting increased adoption and usage.

The blockchain’s value and volume also registered upticks, which looked encouraging. However, after a comfortable bull rally, MATIC’s price witnessed a price correction over the last 24 hours. Will the token’s decline in price have a negative impact on the blockchain’s network activity?

Realistic or not, here’s MATIC market cap in BTC‘s terms

Polygon’s network activity outperforms others

Narb, a popular Twitter handle that posts updates related to the crypto space, rightly pointed out how Polygon was outperforming the rest in terms of daily active addresses.

The blockchain was ahead of the most popular blockchains like Etheruem [ETH] and Solana [SOL] by a considerable margin. At press time, while MATIC’s daily active addresses were over 365 thousand, Ethereum and Solana’s figures stood at 300,000 and 250,000, respectively.

This directly reflected the popularity of Polygon and how its adoption has increased over the years, which was encouraging for its future prospects. However, it was interesting to see that despite MATIC’s active addresses being high, Solana outshined the two networks by a huge margin in terms of daily transactions.

Source: Artemis

Mentioning MATIC’s network stats, the blockchain’s TVL gained upward momentum, as did its DEX volume. A rise in DEX volume indicated that investors were willing to trade the token on decentralized platforms. Not only that, but the blockchain’s fees also spiked on 13 July, which by and large is a positive signal for a network.

Source: Artemis

A look at MATIC’s state

While Polygon’s network activity remained promising, the same was not true for its price action. According to CoinMarketCap, MATIC’s price declined by more than 2% in the last 24 hours, which was concerning. At press time, MATIC was trading at $0.7721 with a market capitalization of over $7 billion.

The good news was that the declining trend might soon end, as according to Coinglass, MATIC’s open interest was increasing. This possibility was also supported by a few metrics. For instance, MATIC’s exchange reserve was decreasing, suggesting that the token was not under selling pressure.

Read Polygon’s [MATIC] Price Prediction 2023-24

Polygon’s Exponential Moving Average (EMA) Ribbon displayed the possibility of a bullish crossover. The Moving Average Convergence Divergence (MACD) also revealed that the bulls were leading the market. This could help the token increase its price in the coming days. Nonetheless, the Money Flow Index (MFI) registered a downtick.