Polygon loses 11% despite launching on FTX, Bitfinex thanks to Bitcoin
With the entire crypto market collapsing by 9.64%, there is hardly any cryptocurrency that survived the fall, not even MATIC. Even though the network is making progress in development, it remains captivated by the broader market signals.
MATIC will not
Polygon added two more milestones to its ever-expanding list of achievements yesterday. The first of these is the Polygon Proof-of-Stake mainnet integration with FTX. Thanks to this, users were able to easily deposit and withdraw assets on either channel.
Second, MATIC staking went live on digital asset trading exchange Bitfinex. By doing so, users are able to earn up to 41.7% in staking rewards. In response to the announcement, FTX CTO declared:
“We are excited to announce the launch of staking for MATIC…We anticipate immediate adoption of this service, adding to the suite of digital tokens we have available for staking on the platform.
But since the EIP-1559 is online on the network, the performance has not been as exceptional as one might expect.
week after week on-chain transactions decreased by 5.6%, with the average transaction per user being between 9 and 10 txns.
Indeed, the network has also observed a significant reduction in the number of active users since since last week, more than 28% of users have not been active.
But can price action bring them back?
Unfortunately not since MATIC in line with the market drop is experiencing an uncertain price drop. Building on the already disappointing week, over the past 24 hours MATIC has lost almost 11% at one point.
The 22.7% drop seen during the week caused the token to lose 2 major supports.
First, it lost the 50-day simple moving average (SMA) (blue) and 2 days later it also fell below the 100-day SMA line (red).
So, if it can recover the 100-day SMA in the next 4 days, the coin could move back towards recovery.
Although it may be difficult given the correlation of MATIC with Bitcoin which is at its highest for 4 months at 0.93. If Bitcoin continues on the bearish path, it could also take MATIC with it.
However, investors seem to have high confidence in the altcoin, as at press time exchanges have seen 6.5 million higher buy orders from MATIC, indicating that people are “buying the dip”.
This could act as a positive complement against the market crash.