MATIC price broke the dollar barrier again on Tuesday, January 2, as bulls battle fierce psychological resistance. The MATIC funded address has increased by 2,640 since the Polygon team announced a critical partnership with Chainlink in mid-December. Haven surpassed the $1 area in 3 consecutive days, historical on-chain MATIC accumulation trends now indicate that resistance has weakened.
MATIC price reached as high as $1.03 on Tuesday, January 2, as the bulls broke the dollar barrier for the third day in a row. On-chain data trends reveal that the recent partnership with Chainlink LINK appears to have played a pivotal role in the current MATIC price rally.
Can the persistent increase in Polygon Network funded addresses push MATIC price above $1.50?
MATIC Price Soared After Chainlink Partnership Announcement
MATIC generated negative price action between mid-November and mid-December, catching up with the rest of the altcoin market. While companies like Avalanche and Solana achieved triple-digit percentage gains, MATIC’s price dropped sharply by 25%, from $0.98 to $0.72, between November 14 and December 14. December.
The trend, though, was quickly reversed on December 14 when the Polygon team announced a vital partnership to integrate Chainlink data feeds into the Polygon ZkEVM protocol.
This partnership with Chainlink effectively allows decentralized finance (DeFi) applications to access critical price data offline, according to Polygon co-founder Sandeep Nailwal.
As part of the partnership agreement, DeFi developers at Polygon zkEVM would have access to real-time Chainlink prices. As is well known, Chainlink is a leading blockchain-based oracle network that feeds real-world data to smart contracts.
Therefore, this partnership is expected to boost the development of decentralized exchanges, liquidity protocols, and real-world asset (RWA) projects on the Polygon chain.
“With Chainlink Data Feeds on Polygon zkEVM, it is the beginning of a new era. The combination of Chainlink’s industry-leading data solution and Polygon zkEVM’s ZK Rollup superpowers will be a game-changer for DeFi, making a class of brand new advanced DeFi applications,” Sandeep Naiwal remarked.
Before long, investors reacted positively to the news, causing the price of MATIC to rise by 47% and reach a high of $1.09 on December 27. Notably, on-chain data trends observed since the announcement suggest that the price rally may not be over yet.
MATIC Funded Addresses Have Skyrocketed Since Chainlink Partnership
Beyond the price charts, the recent partnership with Chainlink appears to have triggered positive changes in Polygon’s fundamental growth metrics. Indicatively, the number of funded addresses that have MATIC has increased significantly since December 14.
As shown on IntoTheBlock Address with Balance, the total number of funded MATIC addresses was 594,160 as of December 14. However, as of January 2, that number increased by 2,640 to reach 596,800 in just 20 days.
The Funded Addresses metric, also called Total Addresses with Balance, is a critical measure of network demand, tracking, in real time, the total number of wallets currently holding some units of a cryptocurrency.
Typically, an increase in funded addresses is interpreted as a bullish signal, indicating growing adoption of network services and an influx of fresh capital. When it rises during a price rally, it indicates that the rally is driven by organic network growth and not mere market speculation.
Since Polygon-funded addresses are still in an uptrend, it is an indication that MATIC still maintains a steady flow of demand that could propel it to higher prices in the coming days. To avoid falling into losing positions, investors will likely make short covering purchases to avoid any potential decline below $0.80.
By Leonardo Perez
