- Polygon has surpassed Ethereum in terms of gas usage and overall activity.
- The price of MATIC has fallen significantly over the past few days.
Polygon (MATIC) has seen a significant increase in activity over the past few months and has been slowly and steadily gaining interest from several users.
Polygons race to the top.
As Polygon grew in popularity, it surpassed Ethereum in terms of gas usage. Moreover, Polygon has surpassed Ethereum in terms of monthly active users.
Source: Token Terminal
Ethereum’s adoption could slow as users flock to Polygon for its low fees and fast transactions.
However, it is important to remember that Polygon is not a direct competitor, but rather a Layer-2 scaling solution built on top of Ethereum. In the long run, a thriving Polygon ecosystem could actually benefit Ethereum.
What about Matic?
Even though the Polygon network has made significant progress, MATIC has not been able to see the green light.
The price of MATIC mostly trended sideways, but showed a sharp decline on June 6 when the price reached the $0.7413 level.
During this period, MATIC’s OBV (on balance volume) decreased significantly. The decline in OBV during this period suggests that selling pressure on MATIC was greater than buying pressure.
Even at low values such as 0.03, a positive CMF indicates that funds may be flowing into MATIC despite the decline in OBV.
A positive CMF with low trading volume may suggest that larger investors or whales are accumulating MATIC despite a short-term price decline.
Source: Trading View
In addition to interest in whales, retailer interest in MATIC has also been observed.
AMBCrypto’s analysis of Santiment’s data shows that the hoarding rate of addresses holding between 0 and 100 coins has increased.
The increase in MATIC accumulation suggests that many traders see the recent price drop in MATIC as an opportunity to purchase the token at a discount.
Source: Santiment
Realistic or not, the market cap of MATIC in ETH terms is:
Despite MATIC struggling to see growth in terms of price, Polygon has performed really well in the DeFi sector.
In particular, Polygon’s Proof of Stake (PoS), Zero-Knowledge Ethereum (ETH) Virtual Machine (zkEVM), and Coconut Development Kit (CDK) have become the options of choice for DeFi developers.