Polygon’s on-chain activity spikes with 3,369 active addresses on the network.
A significant increase in dormant MATIC coin movements suggests a possible market shift.
Age Consumed metric surge on Polygon hints at growing interest despite price dip.
Polygon’s on-chain activity has surged despite the ongoing decline in MATIC’s price. Recent data highlights an increase in both daily active addresses and the movement of dormant MATIC coins. These developments suggest that a potential reversal for MATIC may be on the horizon, even as the broader cryptocurrency market remains weak.
At press time, Polygon was trading at $0.4384, reflecting a 5.22% drop in the last 24 hours. The market cap stands at $4.38 billion, a decrease of 5.36%. Despite the bearish trend, trading volume has surged by 29.49% over the past 24 hours, reaching $403.3 million.
Polygon has been among the many networks declining since crypto's retrace began back in March. However, a notable spike in on-chain activity may be a sign that a MATIC reversal may be brewing soon. Active addresses and dormant coin spikes are common signals preceding this. pic.twitter.com/RY5NXe10ZW
— Santiment (@santimentfeed) August 28, 2024
Santiment, a blockchain analytics platform, reported a significant spike in the Age Consumed metric for MATIC. This metric measures the movement of dormant tokens by multiplying the number of coins in motion by the time since their last transfer. A sharp increase in this metric often precedes price reversals, indicating renewed interest from long-term holders.
On August 27, the Polygon network recorded one of its highest levels of activity this year. A total of 3,369 addresses interacted on-chain, marking the second-highest day of the year in terms of daily active addresses. This spike in activity coincided with the surge in the Age Consumed metric, suggesting that major dormant wallets are becoming active again.
Further supporting this trend, data from IntoTheBlock revealed a rise in active addresses since August 26, with over 1,000 new addresses recorded on August 27. This increase in new addresses indicates growing participation in the Polygon network despite the bearish market conditions affecting MATIC.
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The uptick in on-chain activity comes at a time when MATIC’s price has been under pressure. Since March, Polygon has faced a declining trend, largely mirroring the broader crypto market’s downturn. However, the recent spike in on-chain activity could signal a potential turnaround for MATIC, as such activity often precedes positive price movements.
As the market continues to monitor these developments, the increase in daily active addresses and the Age Consumed metric might be early indicators of a forthcoming shift in MATIC’s price trajectory. With more addresses interacting on-chain and dormant coins moving Polygon’s network shows signs of renewed vitality, potentially setting the stage for a price reversal.
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