- Despite Polygon’s success, MATIC has lagged behind the cryptocurrency’s upward trend.
- Polygon’s switch to ZK-tech could reshape MATIC’s future and boost sentiment.
Despite the widespread success of the Polygon (MATIC) network in several areas over the past few months, its native token has not experienced the same level of growth.
stay behind
Cryptocurrencies are up nearly 100% since the start of 2023, and MATIC has emerged as a notable exception to this positive trend. MATIC fell behind its competitors as focus shifted elsewhere.
Its current circulating market cap lags behind Polkadot, Tron, Avalanche, and Cardano. This can have a negative impact on investor sentiment, as assets with stronger growth potential are often preferred.
It also lagged behind Optimism and Arbitrum in fully diluted valuation (FDV).
For context, FDV represents the theoretical maximum value of a cryptocurrency or token if all available tokens are in circulation. This takes into account the total supply of tokens, including tokens held by the project team, investors, or reserved for future launches.
The low FDV means that MATIC’s perceived potential is not as high as some of its competitors when considering total token supply.
Underperformance puts MATIC at a competitive disadvantage in the rapidly evolving cryptocurrency landscape and could potentially impact its market position in the future.
The cryptocurrency is up up to 100% since early 2023.
A notable exception to the upward trend is MATIC.
But fate changes, and something is brewing at Polygon… 🧵 pic.twitter.com/y1XFNnqpMn
— Osgur Mok (@0xomok) February 8, 2024
However, the situation at MATIC may change in the future. Polygon has fully embraced ZK technology and is recognized as an outstanding ZK team. The transition includes Polygon becoming a ZK-based chain aggregation layer. This could improve sentiment towards MATIC and Polygon.
Status of MATIC
At the time of press, MATIC was trading at $0.845009, with the price up 1.36% over the last 24 hours.
Network growth also surged during this period. This suggested that new users were showing interest in MATIC tokens. As a result, MATIC’s MVRV ratio also increased, showing that most holders achieved profitability.
Is your portfolio green? Check out the MATIC Profit Calculator
These profitable addresses could provide incentives to sell their holdings in the future, which could cause problems for MATIC in the future.
Source: Santiment
In terms of protocol performance, Polygon fared relatively well as the network’s active addresses continued to surge.
🟪🟪🟪
What are the milestones? @0xpolygonPoS! 🚀
According to @artemis__xyz Data, daily active addresses @0xpolygon It soared to an all-time high of 657K! 📈
stay tuned #polygon, this is just the beginning! 💜 pic.twitter.com/mTxATpjoj0
— 🪁 Chemchaz | Formerly 0VIX Chads (@KEOM_chads) February 7, 2024