Polymarket Shows Promise
Polymarket, a prediction market dApp on Polygon, has experienced surging activity as trading volumes cross $100 million. The popularity of Polymarket has contributed significantly to Polygon’s ecosystem, attracting more users and developers to the network.
Impact on Polygon Network
Polygon’s [MATIC] ecosystem has seen high amounts of activity on its network, partly due to the popularity of its dApps. Polymarket, an events-based betting dApp, has done more than $100 million in terms of volume with activity spiking significantly.
More users attracted by popular dApps like Polymarket translates to:
- More users on the Polygon network overall
- Attracting more developers to build dApps on Polygon
- A wider range of applications created on the platform
This further enriches the Polygon ecosystem, leading to increased adoption and network activity, which can positively impact the price of MATIC, Polygon’s native token. As more users interact with dApps, the demand for MATIC for gas fees and other functionalities could rise.
How is MATIC Doing?
At the time of writing, MATIC was trading at $0.5524 and its price had fallen by 1.08% in the last 24 hours. Since the 7th of June, the price of MATIC had fallen materially.
During this period, the price of MATIC exhibited multiple lower lows and lower highs, indicative of a bearish trend. The RSI (Relative Strength Index) for MATIC had also decreased during this period, which suggested that the bullish momentum around MATIC had waned.
However, the CMF (Chaikin Money Flow) for MATIC had grown significantly, implying that the money flowing into MATIC had surged significantly in the last few days. If heightened money flow persists, the chances of a reversal rise. If MATIC manages to test the $0.5961 level and weaken it, the price could aim to reclaim $0.7413 in the future.
On-Chain Metrics
Coming to the on-chain metrics, AMBCrypto’s analysis of Santiment’s data revealed that the Network Growth had declined materially in the last few days, implying that new addresses were losing interest. If this trend persists, the chances of a price reversal for MATIC could be severely affected.
