- Polygon hits an all-time high in daily active addresses.
- The new milestone further highlights the growing fundamentals of the network.
- The recent high network activity has raised questions about the potential ramifications of MATIC’s price action.
Activity is picking up on Polygon, a popular Ethereum scaling solution. Over the past two months, the network has averaged more than 1 million daily active addresses. In this impressive streak, this key indicator has hit a new all-time high, a sign of strengthening network fundamentals.
Could this high activity be the catalyst needed for MATIC, the native token of the Polygon network?
New high
On Thursday, May 30, the Polygon network hit a new all-time high at approximately 1.5 million daily active addresses, per data. polygon scanThis marks the 72nd consecutive day of an impressive average of over 1 million active addresses per day.
source: polygon scan
sugar DappRadar According to the data, dApps that have drawn significant traffic in the past 24 hours include Matr1x, a play-to-win first-person shooter, REVOX.AI, a decentralized content distribution platform, and Particle Network, an account abstraction services platform.
Recent activity suggests strong network fundamentals, and is a potentially bullish sign for MATIC as higher network usage means more demand for MATIC. So is it expected that the asset can shake up last year’s slump?
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Over the past year, Polygon has outlined its plans to scale Ethereum infinitely by connecting as many networks as possible to share liquidity with leading layer 1 chains. In line with this vision, the company has launched several impressive products, such as the Chain Development Kit and AggLayer, while also outlining several major upgrades.
Despite Polygon’s recent promising roadmap and technological advancements, MATIC has primarily traded between $1 and $0.50 over the past year, while many other assets have seen triple-digit percentage gains.
source: TradingView
So far, the asset’s major price movements have not been linked to Polygon’s fundamentals, but broader market movements typically driven by Bitcoin. For example, as Bitcoin hit an all-time high in March 2024, MATIC surged to a 12-month high.
Over the past few weeks, MATIC’s price action has been largely quiet, moving in lockstep with Bitcoin. At the time of writing, MATIC is trading at a price range of $0.6949.
On the flipside
- It is not yet known how long the recent increase in Polygon network activity will last.
- There are several factors that affect the MATIC price.
Why This Matters
Despite MATIC’s lackluster price action, Polygon’s network activity is increasing. This trend signals a growth in network fundamentals, which could have a ripple effect on the price.
To learn more about Polygon, read:
Why Polygon (MATIC) Prefers Distrust Chain for AggLayer Security
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