MATIC was the best performing asset out of the top 20 cryptocurrencies in the last 24 hours. The growth of new addresses and outstanding interest contributed to the increase.
The price of Polygon [MATIC] surpassed every other asset in the top 20, according to CoinMarketCap data. In the past 24 hours, the price-tracking platform showed MATIC gaining 9.24% as it crossed $0.70 — a mark it had struggled to cross over the past 30 days.
Is your wallet green? Check the MATIC network profit calculator
However, the token’s run up the charts did not appear suddenly without some underlying factors. On-chain analytics platform Santiment pointed out in its July 10 tweet that an increase in network growth played a role in keeping MATIC from collapsing.
📈 $MATIC is on a mini-run today, with its price up +6% in the last 8 hours. Some positive on-chain signals for the 12th ranked market cap assets include recovering network growth, declining supply on exchanges and low profit taking. https://t.co/EB4njHmn1W pic.twitter.com/NmwvNQY89j
— Santiment (@santimentfeed) July 10, 2023
Sparking new recruits
Network growth describes the number of new addresses that first participated in sending or receiving a token. And according to Santiment, MATIC’s network growth surged to 1550 on July 9.
This increase implies that MATIC had gained new ground according to investor interest and that the traction of the Polygon network had increased. In several cases, this acts as a force behind the price action.
Another influential factor behind the price increase of MATIC was the offer at fairs. At the time of writing, MATIC’s supply on the stock market fell to 8.4%. Earlier, on July 9, the same metric had risen to 9.7%.
Such a high percentage indicates action by market participants to make a profit. But now that the exchange supply has decreased, it means that the broader intent to sell some tokens has decreased. Usually, this helps price action against a sharp decline.
Source: Sentiment
Social authority and an increasing interest
In addition, MATIC’s social dominance reached its highest point since the beginning of July. Social dominance takes into account the share of discussions about an asset compared to others in the top 100 by market cap.
As shown above, the rise to 1.062% indicates that the token has received increased attention from the wider market. This also serves as a bullish signal. Therefore, the metric could influence the increase in the value of MATIC
Meanwhile Coinglass revealed that MATIC’s outstanding interest has increased significantly over the past 24 hours. Open interest is described as the total number of futures contracts held by market participants at the end of a trading day.
How many 1.10, 100 MATIC’s worth today?
When the outstanding interest decreases, it means money was flowing out of the market and there was no force behind the price action.
Therefore, the increase in MATIC’s Open Interest means that more positions have been opened than closed. This puts MATIC in a pole position for a further price increase, barring major changes.
Source: Coinglass
This post Assess the factors behind Polygon’s recovery
was published first on https://ambcrypto.com/assessing-the-factors-behind-polygons-rebound/
