Polygon (MATIC) Achieves 4 Billion Transactions Milestone- Strong Network Growth Despite Subdued Price

Polygon (MATIC), a prominent Ethereum scaling solution, has achieved a major milestone by exceeding 4 billion transactions processed on its network. This quick growth is a sign of widespread adoption of the Polygon network, but the price of its native token, MATIC, has not reflected this uptick in activity.

Polygon Outpaces Established Blockchains

Launched in June 2020, Polygon reached the 4 billion transaction mark in under four years. This achievement is quite significant compared to established blockchains like Bitcoin, which took nearly 15 years to reach one billion transactions, and Ethereum, which reached around 2.4 billion transactions in almost a decade. Polygon’s tremendous rise highlights the growing demand for quicker and economical blockchain transactions.

Active Users on the Rise, Popular dApps Driving Engagement

The increase in transactions on Polygon is accompanied by a flourishing user base. Since mid-March 2024, the network has been home to over one million active users (daily basis) indicating consistent user engagement. Several popular decentralized applications (dApps) like Galxe (digital identityss network), Matr1x (play-to-earn game), and EARNM Rewards (loyalty package) are boosting user activity on the Polygon network.

Active Network and a Strong Ecosystem

The everyday transactions chart on Polygon network shows steady activity, with phases of high usage. This strong transaction volume strengthens the argument for a possible MATIC price surge, as it points toward an engaged and dynamic network with real-world use cases.

Network Growing with Increase in Users and Transactions

The amount of MATIC addresses with nos-zero balances is gradually increasing, suggesting expansion in user base. This indicates that more people are holding MATIC, likely to interact with various applications on the Polygon network. Moreover, the Polygon network is experiencing a steady increase in unique addresses, implying continued user interest in the platform.

Price Troubles- Disconnect Between Price and Network Activity 

In spite of the remarkable network growth in terms of transactions and active users, MATIC’s price has stayed mostly stagnant over the previous year. While key cryptocurrencies like Ethereum and Bitcoin experienced significant price increases, MATIC stayed range-bound ($0.5 to $1). This price stagnation is suggestive of the fact that the market may be underestimating the value that the Polygon network offers.

Analyst Opinions- Long-Term Bullish for MATIC

While the present price may not reflect the network’s growth fundamentals, analysts continue to be optimistic about MATIC’s long-standing prospects. The strong network essentials, as evidenced by the surge in transactions, active users, and dApp development, indicate the platform’s value proposition. Though, investors looking for immediate price appreciation may need to be patient, as the market sentiment might take time to catch up with the network’s growth.

Meanwhile, technical indicators the likes of the Ichimoku Cloud hint at a likely price increase for MATIC. A break beyond the 0.618 Fibonacci levels ($0.80) could cause a bullish run, with the target value of $0.99. However, basic resistance level at $0.89 and $0.99 could be challenging for the token’s price in the short term.

Final Thoughts

Polygon (MATIC) is a fascinating case of a blockchain network experiencing explosive growth in terms of transactions, daily active users, and dApp development, yet its token price has not kept pace. While this disconnect might frustrate short-term investors, analysts remain optimistic about MATIC’s long-term potential due to the network’s strong fundamentals. With continued user adoption and likely technical price breakouts, Polygon (MATIC) could be geared for significant growth in the future.

Joas Buysse

Joas is a seasoned investor and fintech expert from Bassecourt, Jura, Switzerland. She also works as an administration executive at Stock B. Joas has been working with SB news since 2 years to educate its readers about NFT, Cryptocurrency and Fintech tips.

Related Articles

Back to top button