Polygon’s native MATIC token has seen significant gains over the past week, rising 17% to over $0.60. This double-digit rally comes as altcoins like MATIC decouple from the price movements of Bitcoin.
- Polygon’s MATIC token has seen double-digit gains of 17% in the past week, decoupling from Bitcoin’s price movements.
- MATIC rose from around $0.50 to over $0.60 amid Bitcoin crossing the $30,000 level.
- This decoupling is seen as one of the best performing altcoins compared to Bitcoin in 2023 so far.
- The price rally comes as Polygon’s zkEVM network sees a 40% increase in total value locked (TVL), reaching an all-time high.
- However, overall DeFi activity on Polygon remains stagnant, with drops in total value locked and DEX volumes.
- MATIC holders have increased but network growth slowed, indicating less new users engaging in transactions.
- Transaction volumes spiked with more daily active addresses, but money flow indicates a bearish trend.
MATIC’s price rose from around $0.50 as Bitcoin crossed back above the key $30,000 level after weeks of consolidation. This latest altcoin run seems to be one of the best performing decouplings from Bitcoin so far in 2023.
According to on-chain analytics firm Santiment, previous Bitcoin rallies in 2022 saw altcoins fall behind in performance. This time, top altcoins like MATIC, LINK and AAVE are leading the market’s uptrend.
MATIC’s rally follows a period of sluggish on-chain activity, with drops in total value locked (TVL) across Polygon’s DeFi protocols. However, Polygon’s new zkEVM network is seeing rapid adoption with TVL rising 40% to an all-time high.
All TIME HIGH
Polygon zkEVM has reached a new ATH in TVL and has increased 40%+ over the last 30 days. pic.twitter.com/LA27j68u9n
— Today In Polygon (@TodayInPolygon) October 20, 2023
While transaction volumes have spiked on Polygon, money flow indicators are bearish in the short-term. The number of new addresses engaging in MATIC transactions has also slowed down.
MATIC’s impressive upside move brings optimism to Polygon’s ecosystem. But questions remain on whether this decoupling rally can be sustained long-term.
Much relies on improving fundamentals across Polygon’s DeFi landscape. For now, MATIC holders are reaping the benefits of its independence from Bitcoin’s price swings.
Polygon will need to incentivize developers and users to build on and adopt its network beyond trading gains. The activity on its zkEVM solution is a step in the right direction to advance its blockchain adoption.