Riding the Santa Claus rally, Polygon [MATIC] charted a new all-time high [ATH] of $2.87 on 26th December 2021 as the overall market seems to be on a recovery path. Especially after Uniswap Labs’s recent announcement that it had deployed on to Polygon following overwhelming support from the community and governance, the layer-2 scaling solution has been witnessing massive address activity that culminated into establishing a new peak in MATIC’s price action.
That being said, prominent data provider Santiment has published a report detailing MATIC’s new high and gave an overview on the performance of key metrics such as Active Addresses, Exchange Inflow, Active Deposits, Social Volume, Holders Distribution, and Supply on Exchanges.
On the Active Address count, the report observed that things don’t look grim. As gauged from the above chart, there are three solitary spikes that Santiment attributes to rising deposit activity, but with daily active addresses reaching at 8K concludes place Polygon among the top-5 most active coins in Ethereum. Overall this depicts a decent network activity.
Exchange metrics [Exchange Inflow and Active Deposits]- The Active Deposits count remains dull. In fact, it’s actually quite low. However, the coin post little activity in terms of its Exchange Inflow.
With respect to the Social Volume, the metric projected a weaker activity which implies delayed reaction to the Polygon’s price action. Observing the same, the report noted that it was a little bit concerning to see not that many people reacting to the new ATH. ‘A sign of greed. Looking healthier now.’ the report added.
Similarly, the Holders Distribution metric showed large-scale whales holding from 1 million to 10 million tokens were comfortably accumulating until the recent rally. Smaller whales too revealed some accumulation pattern except for the last few days. On the other hand, Supply on exchanges was flat for a while and then declined for a couple of months, which is a positive signal for a rally in the coin market.
Polygon [MATIC] eye another leg up?
Summing up, the report concluded that MATIC is looking good in terms of fundamentals. Active addresses are at Ethereum’s highest numbers. The only issue is a relatively lacks of response in terms of active deposits along with signs of whales offloading. It further predicted,
“We could probably rather see some sell-offs in the next 24 hours, just so MATIC can correct, and then push another leg up.”