Polygon crosses Ethereum in this metric: Will MATIC respond positively

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  • Polygon’s NFT space wit­nessed growth over the last week, along with active users
  • Exchange reserves fell, but MATIC’s MVRV Ratio looked troublesome 

Sandeep Nain­w­al, the co-founder of Poly­gon [MATIC], tweet­ed about the blockchain’s new achieve­ment on 4 Decem­ber. Polygon’s NFT ecosys­tem wit­nessed growth as Red­dit mint­ed over 250k “avatars” in a sin­gle day.


Read Polygon’s [MATIC] Price Pre­dic­tion 2023–2024


Polygon NFTs on fire

Red­dit first broke its own record of the most avatars mint­ed in one day when it wit­nessed 216k mints on 3 Decem­ber. Accord­ing to NFT­Ga­tor, at press time, 3.65 mil­lion users held 4.3 mil­lion avatars. Inter­est­ing­ly, 3.4 mil­lion users owned a sin­gle avatar, while 234k hold­ers col­lec­tive­ly owned 920k avatars. 

Santiment’s data fur­ther revealed that Poly­gon’s total NFT trade count and total NFT trade vol­ume in USD also reg­is­tered spikes over the last week. This was a devel­op­ment that could be con­sid­ered as promis­ing for the network. 

Source: San­ti­ment

Apart from the NFT ecosys­tem, Polygon’s dai­ly active users also increased. Sur­pris­ing­ly, it even sur­passed the king of alt­coins, Ethereum [ETH]. As per Token Ter­mi­nal, Polygon’s dai­ly active users on Web3 were over 412k, sec­ond only to BNB Chain.

Inter­est­ing­ly, there were sev­er­al oth­er pos­i­tive devel­op­ments in Polygon’s ecosys­tem over the past few days. For instance, online mar­ket­place Flip­kart announced a strate­gic part­ner­ship with the net­work to enter into a Blockchain-eCom­merce Cen­ter of Excel­lence (CoE).

This new part­ner­ship will report­ed­ly focus on research­ing, devel­op­ing, and launch­ing Web3 and Meta­verse use cases.

How does this impact MATIC?

MATIC’s price respond­ed pos­i­tive­ly to these devel­op­ments, as per data from Coin­Mar­ket­Cap, MATIC’s price increased by 13% over the past sev­en days. At press time, MATIC was trad­ing at $0.9386 with a mar­ket cap­i­tal­iza­tion of over $8.19 billion.

CryptoQuant’s stats sug­gest­ed that MATIC’s exchange reserves were decreas­ing, which was a pos­i­tive sign as it indi­cat­ed less sell­ing pres­sure. The token’s num­ber of dai­ly trans­ac­tions and trans­fer vol­ume also increased. 

How­ev­er, not every­thing was work­ing in its favor. Santiment’s chart revealed that despite the price hike, MATIC’s Mar­ket Val­ue to Real­ized Val­ue (MVRV) Ratio declined over the last week, which was con­cern­ing. Addi­tion­al­ly, after reg­is­ter­ing an increase, MATIC’s net­work growth went down on 4 Decem­ber, indi­cat­ing that the investors may have a rea­son to worry.

Source: San­ti­ment



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