Polygon Intersects Ethereum in This Metric: Will MATIC Respond Positively

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  • Polygon’s NFT space has seen growth over the past week, along with active users
  • Foreign exchange reserves fell, but MATIC’s MVRV ratio looked troublesome

Sandeep Nainwal, co-founder of Polygon [MATIC], tweeted about the new blockchain achievement on December 4. Polygon’s NFT ecosystem grew as Reddit created over 250,000 “avatars” in a single day.

Lily Polygon [MATIC] Price prediction 2023-2024

Polygon NFT on fire

Reddit first broke its own record for most avatars hit in a day when it witnessed 216,000 hits on December 3. According NFTGatorComment, at press time, 3.65 million users own 4.3 million avatars. Interestingly, 3.4 million users owned a single avatar, while 234,000 owners collectively owned 920,000 avatars.

Santiment’s data further revealed that PolygonTotal NFT trades and total USD NFT trade volume also recorded spikes over the past week. This is an evolution that can be considered promising for the network.

Source: Santiment

Besides the NFT ecosystem, Polygon’s daily active users have also increased. Surprisingly, it even overtook the king of altcoins, Ethereum [ETH]. According to Token Terminal, Polygon’s daily active users on Web3 were over 412,000, second only to BNB Chain.

Interestingly, there have been several other positive developments in Polygon’s ecosystem over the past few days. For example, online marketplace Flipkart announced a strategic partnership with the network to enter a Blockchain-eCommerce Center of Excellence (CoE).

Jits new partnership would focus on researching, developing and launching Web3 and Metaverse use cases.

What impact does this have on MATIC?

MATICThe price of has responded positively to these developments, according to data from CoinMarketCap, The price of MATIC has increased by 13% in the last seven days. At press time, MATIC is trading at $0.9386 with a market cap of over $8.19 billion.

by CryptoQuant Statistics suggested that MATIC’s foreign exchange reserves were falling, which was a positive sign as it indicated easing selling pressure. The number of daily transactions and the transfer volume of the token have also increased.

However, not everything was in his favor. Santiment’s chart revealed that despite rising prices, MATIC’s market-to-realized-value (MVRV) ratio declined over the past week, which was concerning. Moreover, after registering an increase, MATICNetwork growth slowed on Dec. 4, indicating that investors may have reason to worry.

Source: Santiment

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