Polygon dApp volume crosses $100M: Will this help MATIC’s price?

  • Polygon’s dApp Polymarkets did more than $100 million in terms of volume and also saw a surge in activity.
  • MATIC’s price and Network Growth declined.

Polygon’s [MATIC] ecosystem has seen high amounts of activity on its network. One of the reasons for Polygon’s success would be the popularity of its dApps.

Polymarkets shows promise

Polymarket, an events-based betting dApp, has done more than $100 million in terms of volume with activity spiking significantly.

More users attracted by popular dApps like Polymarket translates to more users on the Polygon network overall.

Success stories like Polymarket attract more developers to build dApps on Polygon. This can lead to a wider range of applications created on the platform, further enriching the Polygon ecosystem.

Increased adoption and network activity can positively impact the price of MATIC, Polygon’s native token. As more users interact with dApps, demand for MATIC for gas fees and other functionalities could rise.

Screenshot 2024 06 30 at 3.27.20 PM

Source: X

How is MATIC doing?

At the time of writing, MATIC was trading at $0.5524 and its price had fallen by 1.08% in the last 24 hours.  Since the 7th of June, the price of MATIC had fallen materially.

During this period, the price of MATIC exhibited multiple lower lows and lower highs, indicative of a bearish trend.

The RSI (Relative Strength Index) for MATIC had also decreased during this period, which suggested that the bullish momentum around MATIC had waned.

Coupled with that, the overall volume at which MATIC was trading at had also declined by 30% over the past month.

However, the CMF (Chaikin Money Flow) for MATIC had grown significantly, implying that the money flowing into MATIC had surged significantly in the last few days.

If heightened money flow persists, the chances of a reversal rise. If MATIC manages to test the $0.5961 level and weaken it, the price could aim to reclaim $0.7413 in the future.

MATICUSDT 2024 06 30 15 50 34MATICUSDT 2024 06 30 15 50 34

Source: TradingView

Is your portfolio green? Check out the MATIC Profit Calculator

Coming to the on-chain metrics, AMBCrypto’s analysis of Santiment’s data revealed that the Network Growth had declined materially in the last few days, implying that new addresses were losing interest.

If this trend persists, the chances of a price reversal for MATIC could be severely affected.

Polygon on Polygon MATIC 15.59.35 30 Jun 2024Polygon on Polygon MATIC 15.59.35 30 Jun 2024

Source: Santiment

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