Polygon (MATIC) has experienced a rollercoaster ride in the past weeks, with a brief 3% climb in the last 24 hours giving way to a subsequent 2.70% fall. The cryptocurrency’s week-long losing streak, resulting in a 10% market value loss, shows no signs of abating.
MATIC’s USD trading volumes plummeted by more than 50% during this period, a trend typically interpreted as bearish. Low trading volumes in an uptrend suggest waning trader interest. The Weighted Sentiment corroborates this bearish narrative, sinking further into negative territory.
Speculative interest in MATIC has also dwindled since the year began, as per Coinglass data revealing an Open Interest (OI) in MATIC futures at $216.85M. Short positions have consistently outnumbered longs in 2024, signaling a lack of bullish sentiment among derivatives traders.
ChainArgos, a blockchain intelligence firm, recently unveiled concerning findings about the network. Suspicious transaction patterns have raised questions about Polygon’s adherence to its initial token allocation plan. ChainArgos pointed out anomalies in the flow of tokens from its vesting contract, revealing sizable transactions to various exchanges and a specific wallet receiving 470 million MATIC from the foundation and an insider wallet.
The largest transfer, totaling 178 million MATIC, was sent to Binance, with the last transaction dated May 23, 2021. Etherscan charts substantiated these findings, illustrating the token movements associated with Polygon.
NFT Sales Soar: Polygon Records $90M In January
Despite these challenges, Polygon’s blockchain recorded a remarkable $90 million in NFT sales in January, the highest monthly volume since April 2022. Polygon ranked as the fourth-largest blockchain for NFT trading over the last month, with sales exceeding $100 million, a 70% increase from the previous month.
While underperforming in comparison to other leading crypto assets, the network had a noteworthy 2023. Electric Capital’s report revealed that Polygon attracted over 6,200 new developers during the year, making it the second-most attractive blockchain to developers after Ethereum. The report highlighted Polygon’s strong appeal within the developer community, emphasizing its alignment with Ethereum narratives. Founder “Narb” asserted, “Polygon is Ethereum,” in response to the report, underlining the project’s strategic positioning for future growth despite current challenges.
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