## MATIC Faces Sharp Decline, Hits Two-Year Low Amid Crypto Market Turmoil

Investors reel as the crypto market takes a steep downturn, wiping out $260 billion in market cap over the past two days. Coinglass data reports that within 24 hours alone, approximately 230,000 traders have collectively lost $662.90 million in liquidations, with long-position investors bearing the brunt at $565.08 million.

Polygon (MATIC), once a prominent player, now struggles at a two-year price low after a week of relentless losses, marking a 20% decline. Despite its popularity as a blockchain network, MATIC has seen its market standing diminish steadily over the past year. While it weathered the storm during last year's market downturn, this year's bullish conditions have seen other cryptocurrencies overshadow it, constraining its price.

Trading at $0.4565, MATIC has seen a significant 11% drop in the past day and maintains a troubling 33% decline over the year. Earlier gains in March, where it rallied to $1.2714, now seem distant amidst its current struggles.

The decline correlates with a notable decrease in daily active addresses, signifying reduced network activity as a key factor behind MATIC's downturn. The token price-DAA Divergence return stands at -35.59%, highlighting this dwindling engagement. Notably, the last time this metric dipped below zero was on October 24, 2023, preceding an upward trend.

Looking forward, some crypto analysts predict further declines of 15-20%, suggesting that MATIC's challenges may persist in the near term.

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