Polygon

Polygon is a Layer-2 (L2) scaling solution that has been marketed as a solution to Ethereum&#39;s throughput concerns and prohibitively high gas prices. Despite Ethereum&#39;s successful shift to proof-of-stake (POS) and network enhancements, crypto investors expressed worries about the Entire ecosystem&#39;s long-term stability.Yet, Polygon&#39;s speedier transaction speeds and strategic collaborations to broaden the ecosystem look to be paying off in terms of network growth.A deeper examination of critical on-chain data reveals that, despite the recent 27% correction, Polygon has not lost significant traction. The number of Daily Active Addresses on the Polygon network has grown in the previous 30 days, according to Santiment.From February 5 and March 6, the number of active users on the Polygon network increased from 150,000 to 175,000. A spike in traction typically reflects a rise in underlying demand for network-hosted services.Another important point is the favorable divergence between the current MATIC Price decline and the increase of Daily Active Addresses. Such divergence, as shown between December 2021 and January 2022, might be an encouraging harbinger of an imminent price increase.Since mid-February, MATIC holders have seen a 27% retracement. According to critical on-chain data from IntoTheBlock, crypto investors are attempting to terminate the MATIC sell-off and position themselves for future profits.On February 6 and March 6, the number of short-term traders fell by roughly 3,000 addresses. Meanwhile, the number of addresses that have had MATIC for at least one year has increased by 17,000%.This optimistic indication indicates that short-term traders are exiting their positions, while long-term investors appear to be waiting for future profits.The Global In/Out of Money data, which indicates the distribution of MATIC holders around current prices, backs up the positive view.Just 33% of holders are in profit at present levels, indicating tremendous space for development because those who are out of money are unwilling to sell at enormous losses.If MATIC can break over the $1.25 barrier, where 42,000 addresses control 1.5 billion tokens, it might climb to $1.85. The next substantial obstacle comes from roughly 100,000 addresses, which possess 230 million MATIC.If the market becomes negative, the target support level will be $0.93. If the 88,000 addresses owning over 5 billion MATIC tokens at an average price of $0.93 are unable to halt the bears, MATIC may fall below $0.78, where 58,000 addresses possess 760 million tokens.

Polygon (MATIC) Price Down 27%, but Growing Traction Gives Hope

ItsBitcoinWorld

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