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Polygon Records One Million Active Addresses — What Next For MATIC?

Last Updated February 26, 2024 1:44 PM
Nikola Lazic
Last Updated February 26, 2024 1:44 PM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • Polygon has more than one million active POS addresses.
  • The MATIC price is hovering near $1, hinting at bullish trends.
  • The system’s TVL  has increased slightly, not matching the address growth rate.

The Polygon network recently shattered records by surpassing one million active Proof-of-Stake (PoS) addresses. This surge in active addresses underscores growing interest and engagement within the Polygon ecosystem. 

This  milestone highlights the network’s expanding footprint in the decentralized space. It also has implications for the network’s native token, MATIC. As MATIC returns to $1 price amid this activity, the crypto community is watching how these developments might influence its value. 

Polygon On-Chain Data 

Polygon‘s active chain addresses crossed one million unique addresses actively engaging on the network on February 23, a new record. On February 26, it reached  a new high of 1.1 million and it is still rising. 

Active addresses
All-time high reached

Despite this surge in active addresses, the increase in daily transactions, which surpassed 4.2 million, did not match the peak in address activity.

daily transactions
no unusual activity

Regarding network volume and Total Value Locked (TVL), there was no proportional increase in response to the address activity. The 24-hour volume hovered around $138 million, failing to reach the highs of over $300 million seen in January. However, TVL rose from about $850 million to $870 million, primarily due to MATIC’s climb.

TVL chart
TVL saw an uptick but nothing significant.


Polygon’s TVL is still significantly lower than its peak of nearly $10 billion in mid-June 2021. 

MATIC Price Analysis 

MATIC reached a high of $1 on February 20 and has been trading near it since then. We could have seen the completion of the bear market when it reached a low of $0.50 on October 19 last year. If that is the case, then the current uptrend is going to lead to a breakout above resistance. 

Daily chart
MATIC at key resistance

Alternatively, the correction was prolonged by two more moves, with the uptrend from October 19 being its second wave X from the WXYXZ correction count. If this is what is happening, we will see the final retest of the ascending support at around $0.60 before the next bull phase begins. 

The determining factor would be a breakout above the descending resistance. If the price gets rejected now and starts moving to the downside, an interaction with the ascending support would be more likely. 

However, if the price does go above $1, our next target would be at $2.60 and potentially a new all-time high above $3.

Disclaimer

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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