Polygon: The network grows but what's in it for MATIC holders
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Polygon prediction for 2022-2023
Polygon [MATIC] in their latest series of collaborations, announced that the Polygon team will be working with Law Enforcement of India. The blockchain is said to be working to create an online complaints portal (FIR).
While this partnership could further improve crypto adoption, it remains to be seen whether this new development can have a positive impact on the state of Polygon.
One of the few areas where Polygon shows growth outside of their collaboration is growth in the number of participants. According to Staking Rewards, the number of Polygon network participants has increased by 5.34% in the past 30 days.
However, there has been a sharp decline when it comes to revenue generated by stakeholders. Revenue plummeted 39.13% last month. In addition, if revenue continues to decline, Polygon will have little prospect of sustaining growth.
A good time for MATIC
Another positive factor is the significant increase in network growth at Polygon. In the last month, the growth of the Polygon network has increased tremendously, indicating that the number of new addresses transferring their MATIC tokens has increased for the first time. This implies that new address activity is increasing.
Another proof of high activity on the Polygon network is the increase in the number of daily active addresses over the past 30 days. As you can see in the image below, the number of daily active addresses has increased significantly during the period mentioned above.
This increase in daily active addresses may indicate growth potential in the near future.
What about MATIC Volume and Price?
Despite Polygon's increasing activity, its volume has remained volatile and experienced massive fluctuations over the past month, as evidenced in the chart below. Additionally, Polygon's Market Value to Real Value (MVRV) ratio also plummeted, which can be seen as a potential bearish indicator.
Despite the growing number of blockchain collaborations and increasing daily activity, MATIC has fallen victim to a bear market. At press time, MATIC is trading at $0.7946 and has depreciated 2.00%. Its volume has dropped 31.60% in the last 24 hours along with its market capitalization down 3.2%.
Polygon accounts for 0.75% of the total crypto market capitalization at press time. Furthermore, its volatility also decreased, suggesting that if investors wanted to buy Polygon, it would be significantly less risky.
Oct 16, 2022