Polygon Records Over 1 Million Active Addresses – Impact On MATIC Price

Christian Encila

Last Updated: July 10, 2024 10:25 am

3 mins read

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The Layer-2 scaling solution for Ethereum, Polygon (MATIC), is currently going through a strange circumstance. The quantity of network activity has increased significantly, but the cryptocurrency’s price is still unpredictable. It’s stuck in a rut, held back by both a possible technical breakthrough and a chronically pessimistic outlook.

Polygon: Can Active Addresses Raise The Bar?

Polygon’s network was humming on July 8th, with an astounding 1.18 million active addresses. For the same period, this easily outpaced Ethereum (365K) and Bitcoin (594K). The increase in user activity stoked expectations of a positive breakout, especially as MATIC was trading over a crucial $0.50 barrier level.

MATIC price up in the last day. Source: Coingecko

Co-founder of Polygon Mihailo Bjelic excitedly provided this statistics, emphasising the increasing use of the network. Some cryptocurrency fans, meanwhile, were quick to label this as a “vanity metric.” They contended that robust economic fundamentals or important transactions are not always correlated with raw address count.

Number of active addresses (24h):

Polygon: 1.18M
Bitcoin: 594k
Ethereum: 365k

Not too shabby, I guess..

— Mihailo Bjelic (@MihailoBjelic) July 8, 2024

Although resistance lingers, the falling wedge pattern suggests a breakout.

Taking into consideration the technological aspects, it seems that things are getting better for MATIC. As the token has been moving in a falling wedge formation, which is commonly seen as a sign that an upswing in the market is about to occur, the pattern has been observed. In addition, as a result of a recent spike in price, MATIC came dangerously close to crossing the threshold of $0.50 for a brief while. It is probable that this is an indication of a future breakout, particularly if the volume of trade grows.

MATIC market cap at nearly $5 billion today. Chart: TradingView.comBut the bulls are up against an unyielding obstacle. As the mark has shown to be a strong resistance level in the past, a clear break above it is essential to the validation of the falling wedge breakout. Moreover, the general mood of the market is still biassed towards the bears. At the time of writing, MATIC was down 10% in the weekly timeframe, data from Coingecko show.

MATIC price down in the last week. Source: Coingecko

Bullish Binance, But Can They Move The Market?

Meanwhile, the biggest cryptocurrency exchange in the world, Binance offers some optimism. When it comes to MATIC, Binance, users seem to be far more optimistic than the whole market. With a solid long to short position ratio of 3.2052, they appear to have a high conviction in the potential of MATIC going forward.

It’s encouraging to see such strong enthusiasm on a significant exchange. But it’s not clear if it will be sufficient to counter the general pessimism. For MATIC, the next several days will be critical. A falling wedge breakthrough might occur if it can generate enough volume to break over the $0.50 barrier and maintain the momentum. But if the barrier holds and the bearish attitude persists, MATIC can experience more downside pressure.

Featured image from cryptodnes.bg, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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