- If the price of MATIC rises while DOT stagnates, the latter position may be taken.
- Sentiment surrounding DOT was bearish and MATIC was bullish.
Polygon (MATIC), currently the 14th most valuable cryptocurrency, was close to overturning Polkadot (DOT) at press time.
Polygon’s market capitalization was $9.17 billion, according to CoinMarketCap. On the other hand, Polkadot’s market capitalization was $9.39 billion.
Needless to say, the differences between the two projects do not appear out of nowhere. However, as interest in MATIC grows, DOT may plateau.
Market capitalization is a product of price and circulating supply. Therefore, it is important to consider the status of these two factors.
Same stroke, different pen
At press time, the price of DOT was $7.32 and the price of MATIC was $0.95. Both cryptocurrencies have experienced notable increases over the past few weeks.
Over the past 30 days, the price of MATIC has increased by 26.13%. On the other hand, DOT soared 11.25%.
Source: CoinMarketCap
The difference in performance suggests that the demand for MATIC may be twice that of DOT. AMBCrypto also highlighted how the Polygon native token has recently seen some bullish signals.
If the signal comes true, there is a high possibility that MATIC’s market capitalization will reverse that of DOT. However, this does not mean that Polkadot will remain stagnant.
One area where Polkadot continues to excel is in terms of its development activities. This final location helped build trust in the project.
However, this does not always lead to better price action. When AMBCrypto investigated Weighted Sentiment, we found significant differences between both projects.
For MATIC, Weighted Sentiment was 0.64. However, DOT’s Weighted Sentiment was in negative territory at -0.37.
This indicator measures the unique social volume associated with positive and negative market commentary.
Source: Santiment
Therefore, it appears that most market participants had an optimistic view on MATIC. The opposite was true for DOT. Bullish sentiment towards the token may trigger buying pressure, which could herald a rise in the price.
On the other hand, bearish sentiment can lead to a deadlock or downtrend.
MATIC appears ready to take charge.
In this case, the price of DOT may fall while MATIC rises, allowing the latter to overturn the former. Another factor that could allow Polygon to upset Polkadot is the total number of holders.
Over the past 30 days, AMBCrypto found that the number of MATIC holders increased from 64.51 million to 68.91 million.
This increase can be seen as evidence that many participants are optimistic about the token in the long term. As for active addresses, that number jumped to 421,000 on February 20.
This represents an impressive use of blockchain and is also an optimistic sign.
Source: Santiment
Realistic or not, here is MATIC’s market cap in DOT terms:
However, data at press time showed a decline in active addresses on the Polygon network. Going forward, DOT may have to watch its back because MATIC could be on its heels.
If demand for DOT increases, it may maintain its 13th position. But otherwise the project may change location.