Polygon (MATIC) saw whole lot of growth in 2021 but has since experienced a decline in transactions, raising concerns about its future.
Examining the present state of Polygon
Polygon, an Ethereum (ETH) blockchain tech growing solution that intends to expand the network’s scalability and reduce transaction costs, has been a subject of interest and speculation between cryptocurrency enthusiasts.
Nonetheless, recent data outlines its transaction volume is sliding. Reports by a tweet by analytics blockchain tech analytics company IntoTheBlock, Polygon’s daily transaction count has plummeted to approximately 2,000, marking an 81.38 percent decline from its peak earlier this year.
In addition, recent reports suggest that zkSync, an Ethereum (ETH) developer platform, is gaining considerable momentum, surpassing Polygon in terms of total value locked
This metric signifies the growing competition within the Ethereum (ETH) ecological system and presents a challenge to Polygon’s leading position.
Analyzing Price Movements
As of today, the price of MATIC stands at $0.864737, reflecting a 2.46 percent decline in the previous day, reports by data from Coingecko.
This fall in price can potentially be attributed to short-term market fluctuations and investor sentiment. Nonetheless, in the weekly time frame, MATIC has experienced a 0.67 percent price increase.
Polygon’s market cap as of now stands at $8,014,165,572. With a circulating supply of 9.3 Billion MATIC crypto tokens, Polygon holds a substantial market share.
Technical analysis provides insights into the key support and resistance zones for MATIC. The nearest support zone for MATIC is $0.75.
If the price were to decline further, this support zone may act as a cushion, attracting buyers and limiting downside movement. Conversely, the nearest resistance zone for MATIC is $1.00, which was previously a support level.
