Polymarket’s Impact on Polygon
The prediction market dApp Polymarket, hosted on the Polygon network, has recently seen its trading volumes exceed $100 million. This surge in activity highlights the growing popularity of Polygon’s dApps and underscores the network’s success.
Popularity and Network Growth
Polymarket’s success contributes significantly to the overall activity on the Polygon network. As more users engage with Polymarket and similar dApps, the entire ecosystem benefits. This increased adoption can attract more developers to create a broader range of applications, further enriching Polygon’s ecosystem.
Implications for MATIC
Increased dApp activity generally leads to a higher demand for Polygon’s native token, MATIC, used for gas fees and other network functionalities. However, despite this positive development, MATIC’s price has recently experienced a downturn.
Current Price Analysis
At the time of writing, MATIC is trading at $0.5524, reflecting a 1.08% decline over the last 24 hours. Since June 7, MATIC’s price has been in a bearish trend, with multiple lower lows and lower highs. The Relative Strength Index (RSI) for MATIC has also decreased, indicating waning bullish momentum. Furthermore, trading volume for MATIC has declined by 30% over the past month.
Potential for Price Reversal
Despite the recent bearish trends, the Chaikin Money Flow (CMF) for MATIC has shown significant growth, suggesting an influx of capital. If this trend continues, there could be potential for a price reversal. Should MATIC test and weaken the $0.5961 resistance level, the price might aim to reclaim $0.7413 in the future.
On-Chain Metrics
According to Santiment, Polygon’s Network Growth has declined recently, indicating reduced interest from new addresses. If this trend continues, it could hamper MATIC’s chances of a significant price recovery.
