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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Polygon Volume Registers Sharp Increase, What Does It Mean?

Keshav Verma
Keshav Verma
1 year ago
3 mins read
Polygon

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On-chain data shows the Polygon trading volume has seen a significant increase compared to the other altcoins. Here’s what this means for MATIC.

Polygon Trading Volume Has Observed A Sharp Jump Recently

According to data from the on-chain analytics firm Santiment, altcoins have observed an increase in trading volume during the last few days. The “trading volume” here is an indicator that measures the daily total amount of a given cryptocurrency that’s getting involved in transactions on the blockchain.

When the value of this metric is high, it means that a large number of tokens are being shifted around on the network. Such a trend can be a sign that traders of the asset are actively participating in the market right now.

On the other hand, low values imply that the cryptocurrency is observing a low amount of activity currently. This kind of trend can suggest that there isn’t much interest in the coin among general investors at the moment.

Now, here is a chart that shows the trend in the trading volume of some of the largest assets in the sector over the past week:

Polygon Trading Volume

Looks like the alts across the board have seen a rise in this metric | Source: Santiment on Twitter

As displayed in the above graph, the trading volume of most of the altcoins had declined to relatively low values a few days back, implying that interest in them had dropped.

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However, during the last couple of days or so, the indicator’s value has bounced back for these assets, suggesting that investors are once again participating in trading.

From the chart, it’s visible that two altcoins in particular have enjoyed the sharpest increase in the metric: Polygon and BNB. This would mean that these cryptocurrencies have a stronger interest backing them right now.

Generally, high amounts of volume are needed to sustain any sharp moves in the price. This is because a high volume implies the presence of a large number of traders, who can provide fuel for building any such move.

Thus, whenever the trading volume rises for any asset, the price of the coin becomes more likely to show volatility. Which direction such volatile price action might take the cryptocurrency in is hard to say from the volume alone, however.

In the case of Polygon and BNB, though, a surge in their prices occurred in the same period as when their trading volumes jumped. This may imply that this fresh trading interest is leaning toward the buying side, at least for now.

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With this latest uptrend, MATIC’s price has gone up by almost 9%. Naturally, if the trading volume continues to remain high in the coming days, it’s possible that this fresh increase might continue into the near future.

MATIC Price

At the time of writing, Polygon is trading around $0.73, up 5% in the last week.

Polygon Price Chart

Polygon has enjoyed some rise recently | Source: MATICUSD on TradingView
Featured image from GuerrillaBuzz on Unsplash.com, charts from TradingView.com, Santiment.net
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Read more

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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