MATIC faces a price correction, but SAGA airdrop sparks interest. Despite obstacles to network growth, Polygon’s ecosystem shows resilience with an increase in active addresses.
MATIC is an ERC-20 token that runs on the Ethereum blockchain. It was created in 2019, through an IEO that was organized on the Binance Launchpad exchange house.
The main function of the MATIC token is to serve as a means for validators to participate in the network consensus, in addition to being the payment method for transaction fees. However, the token’s applications are multiple and it is adapting to the needs that are created around Ethereum. MATIC has a limited issuance of 10,000 million units.
Polygon [MATIC] recently resisted a downward price trend, but a silver lining emerged with the potential for renewed interest driven by recent events.
SZN Air Launch
The focus is on the SAGA airdrop, which captivated more than 26,000 Polygon users who participated via MATIC staking or leveraged Polygon’s zkEVM bridge for Ethereum transactions.
This strategic maneuver aims to infuse interest in the MATIC ecosystem by attracting a new influx of addresses.
On January 4, Today in Polygon, an X account that is the source for Polygon news, analytics and education, posted that “The $SAGA (@Sagaxyz__) airdrop is available to 26K+ Polygon users who staked $MATIC or bridged $ETH using the zkEVM Bridge.”
Polygon co-founder Sandeep Nailwal took to Twitter to express excitement about Saga’s role in their ecosystem.
Praising Saga’s contributions, especially in automating decentralization infrastructure for Appchains, Nailwal hinted at the potential for decentralized sequencing capabilities within Polygon CDK, stating that he already sees “many appchains looking for decentralized sequencing. Polygon CDK will soon have all decentralised sequencing for appchains both self-run as well as managed via partners like Saga.”
Watching Price Movement
Despite these promising moves, traders’ interest in MATIC witnessed a slowdown, evident by the decline in short positions.
Recently, the percentage of short positions taken against MATIC was 53%. This apparent discrepancy raised questions about the immediate impact of these positive developments on the broader sentiment around MATIC.
Digging deeper into MATIC’s price trajectory, a recent correction did not derail the overall uptrend marked by higher highs and higher lows over the past month.
However, MATIC faced a marginal decline of 0.44% in the last 24 hours, settling at $0.856.
In stark contrast to MATIC’s price dynamics, the network’s growth faced a hurdle, indicating less interest from new addresses. If this trend persists, MATIC’s sustained growth potential could be compromised. As MATIC grapples with these short-term challenges, Polygon’s broader network has demonstrated resilience.
Despite the decline in new addresses, active addresses on the Polygon network increased by 31.2% over the past month. However, a 4.1% reduction in revenue generated at Polygon poses a potential hurdle.
In essence, the divergent trajectories between MATIC token dynamics and the broader Polygon network paint a nuanced picture. MATIC’s struggle to attract new addresses and declining trading volume present immediate obstacles. In contrast, the sustained growth of active addresses on the Polygon network hints at underlying strength, despite declining revenue.
MATIC Forecast
According to CryptoPredictions, Polygon started January 2024 at $0.96867672556042 and is forecast to end the month at $0.89629436376523. During January, the expected high price of MATIC is $1.670 and the low is $0.89629436376523.
MATIC price for today (01/06/2024) is forecast to be in the price range of $0.71418501881836 – $1.050. Polygon price is expected to end at $0.84021766919807 today.
By Audy Castaneda
