Over the past few weeks, Polygon [MATIC] has seen a sharp increase in network usage. There is a surge in daily active addresses; however, Polygon’s revenue plummeted considerably in the first quarter of the year. Also, there is speculation that MATIC could soon hit price correction. The speculation is largely based on a drop in Weighted Sentiment along with a hike in P/F Ratio. The latter signals that a further price drop could come in the future.
Crucial metrics of Polygon have increased. This included trading volume and number of holders, among others. For starters, trading volume surged by $6.1 billion on a quarter-to-quarter basis. Second, the number of holders rose by 13.3% on a quarter-to-quarter basis and 84.9% on a year-on-year basis. Also, Market Capitalization grew by 31%.
Accumulation is a direct result of bullish speculation. MATIC price prediction estimates that the token may end the year at $2.50. For reference, MATIC is currently listed at $0.8936 with a slip of 0.86%. The value is, moreover, a drop of 10.25% in the last 7 days and 23.08% in the last 30 days.
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Things are gloomy in terms of revenue, which is evident from the fact that Polygon bagged only $6.83 million in blockchain fees in the first quarter. That is a drop of 19% in comparison to the previous quarter. Revenue hit $2.7 million, shedding 45% over the last quarter. Polygon’s earnings went down by 33%.
An increase of 21% in the P/F Ratio is what’s causing the burden to investors. They are optimistic about the future bull run, but the ratio hints at a contrasting image. A possible price drop takes away the chance of generating better returns in the short and medium term. Nevertheless, Traders continue accumulating MATIC because of a decline in supply on exchanges.
Daily transactions are down to less than 4.25 million. The number of holders and daily active addresses has risen. While that brings positivity for usage and adoption, it notably does not hold a fair picture for the number of daily transactions. The last month has seen not just fluctuation but a drastic fall on the chart. Daily transactions were just above 5 million on March 07, 2024. A jump to April 01, 2024, the chart dropped the beat to less than 4.25 million.
Moving forward, there is a chance that MATIC by Polygon will fluctuate more—probably enter a price correction since its listed value is already down. An ideal way is to do research and risk assessment before investing in the token, or any crypto, for that matter. Predictions estimate a bull run, but the precise timeline is uncertain. Bitcoin Halving could be a pivotal moment, but that is merely a chance and not a surety.
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Polygon now looks to correct revenues in the next quarter and pick up the pieces of Market Cap.
