Polygons: Can MATIC be increased based on polygon growth?
Polygon achieved solid growth in terms of adoption despite MATIC's downturn during the bear market. According to Polygon's latest announcement, in 2022 alone, the network has grown strongly. However, how will this development affect MATIC prices in the short and long term?
Polygon MATIC Price Prediction for 2022-2023
According to the announcement, Polygon has launched over 53,000 dapps to date. This represents an 8-fold increase since the beginning of 2022. The network also revealed that dapp count has increased by 60% following the market crash in June.
Polygon's announcement also confirms that the MATIC handicap has not had a negative impact on network demand. In other words, launching dapps on Polygon took advantage of bearish market conditions to run on Polygon.
Not bad for one of the best Layer 2 Ethereum solutions. More importantly, the rapid growth of dapps has succeeded in highlighting a bright future for the network, as well as its native token.
Polygon growth can affect MATIC
The strong growth in dapp count on Polygon is a good sign of demand on the network. High network demand leads to higher utility and organic demand levels, which can contribute to MATIC's operational efficiency.
Despite this announcement, Polygon's network growth rate remains near a six-month low compared to a six-month high.
One possible explanation for the low growth rate of the network could be due to low dapp usage. An increased number of dapps means that the number of transactions would normally increase under normal market conditions. However, the ongoing bear market ensures a low level of participation in those dapps, so the number of transactions remains low.
Unsurprisingly, daily active addresses have also dropped significantly over the past six months. However, this does not necessarily mean that things will not change. Bull markets often bring waves of demand and utility.
So the next bull run could be interesting to watch, especially when it comes to MATIC. Alternatively, organic demand for MATIC could be stronger, especially now that Polygon has a record number of dapps.
MATIC is trading at $0.86 at press time after gaining 21% over the past six days. Its current price action reflects the ongoing downtrend. The recent announcement could also boost investor confidence, in which case we could see MATIC continue to recover in the coming days.
The dapp growth announcement also highlights a potentially strong long-term outlook for MATIC.
Oct 19, 2022