- Over the past 30 days, Polygon’s volume, revenue, and fees have all declined.
- MATIC’s momentum has been weak and another downtrend could be imminent..
According to a post shared by Artemis, the 30-day daily trading volume on the Polygon (MATIC) network has decreased by 31.7%. Cryptocurrency measuring terminals show Polygon’s trading volume as of January 18 was $3.35 million.
But Polygon wasn’t the only project to suffer such decline. Solana (SOL), BNB Chain, etc. also belonged to the same group.
The daily trading volume for the past month is as follows: đź“Š
1. Solana: 22.7 million
2. Tron: 4.8 million
3. Six Network: 4 million
4. BNB chain: 3.8 million
5. Polygon POS: 3.3 millionWhile there was a decline compared to the previous month, new entrants are noticeable. pic.twitter.com/vHYmlIjkek
— Artemis (@artemis__xyz) January 18, 2024
until the last line
The decline in trading volume means there are fewer buy and sell transactions involving MATIC. Additionally, trading volume affects the value of a cryptocurrency as it is expressed in monetary terms.
For example, when AMBCrypto reported an increase in volume on Polygon, the price of MATIC continued to surge.
Therefore, the recent decline in trading volume also affected MATIC’s direction. At press time, MATIC was valued at $0.79, down 13.47% over the past 7 days.
A decrease in transaction volume due to a drop in price reflects a decrease in demand. If no buyers enter the market at this stage, prices may continue to fall.
This was the situation with MATIC, which was at risk of falling to $0.70. On the other hand, if buying pressure comes in at any time, the direction of MATIC may change to the upward direction.
Additionally, AMBCrypto’s analysis of Polygon fees shows that they follow the same path as volume and price. At press time, data from Token Terminal showed a 33.2% decline in revenue over the past 30 days.
Source: Token Terminal
An in-depth evaluation of the data revealed that December 28th was the last time Polygon received commissions of more than $100,000.
Fewer Bridges, Lower Prices
When we considered Polygon’s Net Value Bridge (NVB), we found that this also decreased. NVB represents the value of assets connected to the Polygon Proof of Stake (PoS) network. However, this indicator does not take into account assets that are linked back to Ethereum (ETH).
Increasing NVB means the project is in good health and its utility is impressive. So the decrease here means the verification of Polygon transactions has slowed down.
Source: L2BEAT
Following the price action, the 4-hour chart showed MATIC continuing to be bearish. First, it lost the $0.83 support level on January 17th. A day later the bulls were unable to defend the $0.80 area.
How much is 1,10,100 MATIC worth today?
RSI signals that buyers are attempting to revive the price. However, if the RSI is not minimal, record 44.40. MATIC could fall to $0.75.
Additionally, On Balance Volume (OBV) showed that crowd sentiment does not predict a bullish outcome as volume did not close higher.
Source: TradingView