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Polygon’s native token MATIC could be in for a resurgence soon. Analysts have spied a “notable spike” in active addresses and dormant coins coming back to life.&nbsp;
On Aug. 28, blockchain analytics platform Santiment <a data-ct-non-breakable="null" href="https://x.com/santimentfeed/status/1828857731446649125" rel="null" target="null" text="null">said</a> there had been a surge in onchain activity on <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/polygon-blockchain-explained-a-beginners-guide-to-matic" rel="null" target="null" text="null">Polygon</a>.
A chart shared on X shows a strong surge in dormant token movement this week, coinciding with this year’s second-highest number of <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/polygon-plonky3-enhancing-ethereum-scalability" rel="null" target="null" text="null">Polygon</a> addresses interacting with the network.&nbsp;
“A notable spike in on-chain activity may be a sign that a MATIC reversal may be brewing soon,” Santement stated.
<figure>
 <img alt="Polygon MATIC may be ‘brewing’ reversal amid sudden spike in onchain activity" name="" src="https://s3.cointelegraph.com/uploads/2024-08/01919c37-e882-7b6b-8e54-18dd170c169e">
 <figcaption style="text-align: center;">
 Polygon onchain activity resurgence. Source: <a data-ct-non-breakable="null" href="https://x.com/santimentfeed/status/1828857731446649125" rel="null" target="null" text="null">Santiment</a>
 </figcaption>
</figure>
The data appears to be a reversal from a longer trend.
Data from blockchain explorer Polygonscan <a data-ct-non-breakable="null" href="https://polygonscan.com/chart/tx" rel="null" target="null" text="null">shows</a> a slump in address activity beginning in late July. It fell around 50% from 1.6 million to 700,000 in late August.
Daily transactions have also been trending down from over five million in March to around three million in late August, <a data-ct-non-breakable="null" href="https://polygonscan.com/chart/tx" rel="null" target="null" text="null">according</a> to Polygonscan.
But despite this week’s spike in activity, as reported by Santiment, Polygon (<a data-ct-non-breakable="null" href="https://cointelegraph.com/polygon-price-index" rel="null" target="null" text="null">MATIC</a>) remains at bear market levels.&nbsp;
<figure>
 <img alt="Polygon MATIC may be ‘brewing’ reversal amid sudden spike in onchain activity" name="" src="https://s3.cointelegraph.com/uploads/2024-08/01919c39-53ae-7565-8b24-548688daa3f4">
 <figcaption style="text-align: center;">
 Active Polygon addresses. Source: Polygonscan
 </figcaption>
</figure>
MATIC prices jumped to a two-month high of around $0.58 on Aug. 25 but could not sustain momentum and fell back rapidly.&nbsp;
Since then, the layer-2 network token has dropped 24%, falling to a 10-day low of $0.437 on Aug. 29, following a further 5% decline over the past 24 hours.
MATIC remains down 85% from its December 2021 all-time high of $2.92, according to CoinGecko.&nbsp;
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/tokenized-rwa-30-trillion-opportunity-polygon-exec" rel="null" target="null" text="null">Tokenized RWAs are ’a $30-trillion opportunity’ — Polygon exec</a>
On Aug. 28, Binance <a data-ct-non-breakable="null" href="https://www.binance.com/en/support/announcement/binance-will-support-the-polygon-matic-token-swap-to-polygon-pol-6a6de383727f4659a3050f7982e1620f?hl=en" rel="null" target="null" text="null">announced</a> that it would support Polygon’s upcoming network token <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/polygon-pos-network-token-upgrade-matic-to-pol" rel="" target="_self" text="null">migration from MATIC to POL</a>, scheduled for Sept. 4.&nbsp;
Meanwhile, the Polygon community’s <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/polygon-discord-scam-hits-avalanche-zksync-hours-later" rel="" target="_self" text="null">Discord channel was compromised</a> on Aug. 24 in a widespread attack that compromised the Discord servers of several blockchain projects.&nbsp;
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/algorithm-choice-can-fix-social-media-but-only-on-decentralized-platforms/" rel="null" target="null" text="null">Dorsey’s ‘marketplace of algorithms’ could fix social media… so why hasn’t it?</a>

Polygon MATIC may be ‘brewing’ reversal amid sudden spike in onchain activity

Cointelegraph

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