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Is the Polygon Ecosystem Distinctly Bullish or Bearish?

Polygon MATIC

  • Monthly active users (MAU) on Polygon have surged to their highest point — 8.8 million.
  • Investment giant Franklin Templeton initiates the transfers of its tokenized shares BENJI on the Polygon blockchain.

The Polygon ecosystem has achieved an all-time high (ATH) of 8.8 million in monthly active users (MAU) amid two significant announcements related to Franklin Templeton’s tokenized shares and Stripe’s stablecoin-led crypto payments.

Source: Artemis

Over the past 3 months, active addresses across a few sub-sectors within the Polygon ecosystem displayed bullish rallies. Firstly, the active addresses across the gaming protocols surged by 3,663%. Secondly, the centralized finance (CeFi) protocols recorded a 1,473% surge. The other kinds of protocols’ records were as follows: stablecoin by 36.49%, decentralized finance (DeFi) by 21.52% and SocialFi by 37.97%.

MATIC’s Market Dynamics Looks Bearish

When we look at the 30-day timeframe, Polygon’s native token MATIC appears bearish. The altcoin’s price declined by over 32% — from $1.06 to $0.71. As per the chart given below, the 50-day exponential moving average (50EMA) hovers above the price action, indicating a downtrend.

MATIC/USDT Price Chart (Source: TradingView)

Meanwhile, MATIC’s relative strength index (RSI) is closer to the oversold territory. On the other hand, the weekly timeframe projects an uptick of 4.5% in the token’s price. According to CoinMarketCap data, at the time of analysis, Polygon (MATIC) trades at $0.7128 with a market cap of $7.05 billion and a daily trading volume of $270 million.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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