Messari, a leading cryptocurrency analytics firm, has made an intriguing observation about Polygon’s market cap and user base dynamics. According to a recent tweet, these two metrics exhibit distinct patterns that do not move synchronously. Instead, they can be divided into three phases: Growth, Deviation, and Maturation.
During the first phase, known as Growth, user activity on Polygon lags behind market cap expansion by approximately two months. Despite the lag, there exists a strong correlation of 0.96 between the two factors. At this stage, the cumulative market cap of Polygon’s native token reached 10 billion in January 2021.
Moving into the second phase, Deviation, the market cap continues to grow primarily due to the rise of MATIC, Polygon’s native token. However, user growth experiences a slowdown, deviating from the upward trajectory of the market cap.
Finally, in the third phase, Maturation, the user base of Polygon starts expanding independently of the market cap. It suggests that the project’s adoption and user engagement are no longer solely dependent on the valuation of the native token.
This insightful analysis sheds light on the complex relationship between market cap and user base on Polygon, highlighting the unique phases of Growth, Deviation, and Maturation that the project has undergone.
Polygon (MATIC) Price Analysis
MATIC is currently showing bearish signs, as per the latest data from CoinMarketcap. The cryptocurrency is trading at $0.8599, down by about 2% in the last 24 hours. However, the weekly chart recorded a decline of about 1.36%, indicating some market volatility.
In addition, MATIC’s trading volume has witnessed an increase of 18.21%%, reaching $219,105,764, whereas the market capitalization has decreased by 1.91% in the last 24 hours.
MATIC has been facing ongoing challenges. It experienced significant losses of over -14.7% in the past month, making it one of the worst-performing assets in the market, according to CoinGecko data.
According to Polygon’s technical analysis, there is a bearish trend indicating a predicted price decrease of $0.00095 within the next 7 days, reaching $0.8592 by May 29, 2023.
In the short term, the machine learning algorithm suggests a neutral trend for MATIC. Investors can anticipate a slight increase or a possible decrease in the next few hours.
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