Polygon Hits New Daily Active Addresses High: Can MATIC Follow?

  • Polygon has hit a new all-time high in daily active addresses.
  • The new milestone further highlights the network’s growing fundamentals.
  • The recent high network activity raises questions about potential spillover effects on MATIC’s price action.

Activity on Polygon, the popular Ethereum scaling solution, is gathering steam. Over the past two months, the network has averaged over 1 million daily active addresses. Amid this impressive streak, this key metric has hit a new all-time high, a sign of strengthening network fundamentals.

Can this high activity be the catalyst that MATIC, the native token of the Polygon network, needs?

New High

On Thursday, May 30, the Polygon network hit a new all-time high in daily active addresses of about 1.5 million per data from Polygon Scan, 72 days into its impressive streak of averaging over 1 million daily active addresses.

Chart of daily active addresses on Polygon
Source: Polygon Scan

Per DappRadar data, dApps drawing significant traffic over the past 24 hours include Matr1x, a play-to-earn first-person shooter, REVOX.AI, a decentralized content distribution platform, and Particle network, an account abstraction services platform.

The recent activity hints at strong network fundamentals, a potentially bullish sign for MATIC as high network usage means more demand for MATIC. So, is the asset set to shake the doldrums of the past year?

Eyes to Bitcoin?

Over the past year, Polygon has outlined plans to scale Ethereum infinitely by connecting as many networks as possible to share liquidity with the leading Layer 1 chain. In line with this vision, the firm has launched several impressive products, such as the Chain Development Kit and the AggLayer, while outlining several major upgrades.

Despite Polygon’s recent promising roadmap and technological advances, MATIC has mainly traded between the $1 and $0.5 price over the past year, while many other assets have seen triple-digit percentage gains.

Weekly MATIC/USDT candle chartWeekly MATIC/USDT candle chart
Weekly MATIC/USDT candle chart

So far, the asset’s major price moves have not been linked to Polygon’s fundamentals but broader market moves typically led by Bitcoin. For example, in March 2024, MATIC surged to 12-month highs as Bitcoin marked new all-time highs. 

Over the past few weeks, MATIC’s price action has remained largely muted as it moves in lockstep with Bitcoin. At the time of writing, MATIC is trading at the $0.6949 price point.

On the Flipside 

  • It remains to be seen how long the recent rise in Polygon network activity will last.
  • There are several factors affecting the price of MATIC.

Why This Matters 

Polygon’s network activity is rising despite MATIC’s lackluster price action. The trend signals growing network fundamentals, which could have spillover effects on price.

Read this for more on Polygon:
Why Polygon (MATIC) Prefers to Distrust Chains for AggLayer Security

Follow the drama surrounding Matter Labs’ move to trademark “ZK” in nine countries:
zkSync’s Matter Labs Faces Pushback Over “ZK” Trademark Efforts

Sourced from dailycoin.com.

Written by on 2024-05-31 15:00:00.

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