The Polygon ecosystem’s network has shown encouraging expansion recently. In one recent example, 13.87 percent of all tokens in circulation were transferred from a contract address associated with the Polygon project to the wallet associated with the foundation project. On the other hand, the native token was seeing some very healthy growth during this time.
Which way do we go, down or up?
After the network’s token unlock, Santiment noticed a dramatic increase in activity from Polygon addresses. As MATIC’s age consumption hit a staggering high of 1.66 trillion, a large number of inactive coins also changed hands. The direction of crypto markets can often be deduced from these sudden price changes. However, Polygon observed a decline in its mean dollar age, highlighting the importance of older, inactive wallets in the transfer of a large number of tokens.
The amount of assets that have changed addresses on a given date multiplied by the number of days since the last movement is represented by the Token Age Consumed Index. That’s helpful for foreseeing price changes and trends. However, this might not be enough to offer precision. Considering other few indexes helps explain whether to execute shorts or longs.
Take care, the MVRV ratio has recently shown signs of life and has the potential to boost the asset’s market value. As a result, it was clear that curiosity about MATIC was on the rise. Furthermore, it pointed out that the coin is currently in a time of accumulation.
In this case, the whales backed up the story. According to WhaleStats, the ETH whale bonobo has recently spent more than $14 million. Tokens worth over $2.1 million were acquired after an initial transaction of $1.1 million was made.
Meanwhile, the emphasized insights all corroborated a dramatic price move during the next few days. There’s a discernible northward tilt to it. However, a strong result in Q2 is necessary to back up the potential growth.
As a result, we can’t say for sure that the altcoin won’t experience a decline. Because of this, businesses operating in the market should give careful consideration to MATIC before relying on it heavily. Furthermore, the asset’s behavior in the near term can be influenced by general market cues.
The cryptocurrency market kept the same price range as the previous sessions. Bitcoin currently sits around $23K following yesterday’s drop past the mark. The price of the benchmark cryptocurrency was $23,053.21 at the time this blog post was written. In the foreseeable future, the market’s volatility means that prices could go in any direction.