Polygon (MATIC), a Layer-2 scaling solution for the Ethereum blockchain, finds itself in a curious position. Recent data from Messari paints a picture of a network brimming with activity – daily active addresses surging nearly 120%, new user sign-ups exploding by 70%, and daily transactions reaching a staggering 4 million. Yet, beneath this bustling surface lies a troubling undercurrent: a 19% drop in quarterly revenue compared to the previous quarter, and a hefty 40% decline year-over-year. Related Reading: Ethereum Bloodbath: Over $55 Million In Longs Liquidated As Price Plummets Polygon: A Network On Fire Polygon’s user base is clearly smitten. The first quarter of 2024 witnessed a land rush, with new addresses flocking to the network at an unprecedented rate. This surge in user adoption translated into a transaction frenzy, with daily interactions on the platform quadrupling. The decentralized finance (DeFi) sector on Polygon also thrived, with the total value locked (TVL) in DeFi projects climbing 30% compared to the previous quarter. The non-fungible token (NFT) ecosystem on Polygon also got a shot in the arm, with sales volume rising by nearly 20%. The Revenue Riddle So, why the long face amidst the celebratory confetti? The answer lies in Polygon’s dwindling revenue stream. Despite the exponential growth in activity, the network’s coffers are taking a hit. The $7 million earned in Q1 2024 pales in comparison to the $10 million and $12 million raked in during the previous quarter and the same period last year, respectively. This disconnect between booming activity and declining revenue is the million-dollar question that has analysts scratching their heads. MATIC market cap currently at $6.8 billion. Chart: TradingView.com Fee Fiasco Or Funding Flux? There are two main suspects behind this revenue paradox. The first culprit could be Polygon’s transaction fee structure. Perhaps, in a bid to attract more users, the network lowered its fees to an extent that, despite the massive increase in transactions, the overall revenue generation suffered. Another possibility lies in a potential shift in Polygon’s revenue sources. Maybe there was a decline in income from a specific source, such as grants or partnerships, that wasn’t adequately compensated for by growth in other areas. Related Reading: Can DEX Boom Save Cardano? ADA Seeks Recovery As Trading Activity Surges Christian Encila Christian Encila 22 hours ago 2 mins read What Lies Ahead Polygon faces a critical juncture. The network’s ability to attract users and foster a vibrant DeFi and NFT ecosystem is undeniable. However, if it fails to address the revenue conundrum, its long-term sustainability could be at risk. Moving forward, transparency from Polygon regarding its fee structure and revenue streams will be crucial in assuaging investor concerns. Additionally, exploring alternative revenue models, such as offering premium services or strategic partnerships, could be the key to unlocking Polygon’s full financial potential. Featured image from Zameen.com, chart from TradingView
Former Consensys employee Jack Jia, co-founder of Stable.com, launches new stablecoin USD3 amid regulatory uncertainty and shifting stablecoin narratives.
Polygon, the Ethereum scaling solution aiming to solve the network’s scalability woes, has blasted past a monumental milestone: 4 billion total transactions. This achievement is particularly impressive considering the network launched just four years ago in June 2020. Bitcoin, for comparison, took a staggering 15 years to reach 1 billion transactions, highlighting the breakneck speed […]
The Ethereum layer-2 scaling solutions provider is going up against StartWare’s tech stack Starknet.
MATIC is the native utility token of the Polygon blockchain and it is currently ranked 18th by market cap, with a total supply of 10 billion MATIC and a total trading volume of over $204 million in the last 24 hours. It has been moving upward since its last rejection at a $0.6342 support level. Following the recent bullish trend of the crypto market, MATIC has not been left behind as the price has been on an uptrend with very strong momentum for a while now. Since its last rejection point, MATIC has seen a price reversal of over 10%. Technical Indicators Point Toward Sustained Uptrend For MATIC To figure out where MATIC’s price might be headed next, several indicators can be used to examine the chart; 1-Day MACD: A technical look at the MACD indicator from the 4-hour timeframe, the MACD histograms are trending above the zero line, and both the MACD line and the Signal line have crossed and are heading towards the MACD zero line, indicating a bullish trend. 1-Day RSI: the formation of the Relative Strength Index (RSI) in the above image also suggests an upward movement as the RSI signal line is seen moving toward the 50% level. This indicates that buyers are gradually becoming active in the market therefore overpowering the strength of sellers. 4-hour Alligator: A look at the alligator indicator from the 4-hour time frame shows that the crypto asset is trading above the alligator lines as the alligator lip and teeth have both successfully crossed above the alligator jaw, suggesting that the price might continue to move in an upward direction. Potential Price Movement From the previous downward movement, the price of MATIC has managed to create one major resistance level of $0.7365 and one major support level of $0.6324. Currently, MATIC is moving toward this resistance level and if it breaks above this level, it might go even further to test the next resistance level of $0.7680. However, if it fails to break above this major resistance, it will reverse and start a downward movement toward its previous support. Also, if it manages to break below this support level, the price might move further downward thereby continuing on its downtrend. As of the time of writing the price of MATIC was trading around $0.7253 and about -0.94% down in the last 24 hour Featured image from Shutterstock, chart from Tradingview.com
Polygon (MATIC), the high-speed scaling solution for Ethereum, has been on a rollercoaster ride this month. After a brutal price correction that saw MATIC tumble over 20%, a recent 24-hour surge has injected a dose of optimism into the market. But is this a sign of a full recovery, or a temporary reprieve before further decline? Related Reading: XRP Sees Over $12 Million Sell-Off: Whale Warning Or Buying Opportunity? Polygon’s Price Plunge: A Reality Check CoinMarketCap data paints a sobering picture. MATIC has been steadily dropping down the ranks of the top 20 cryptocurrencies, currently sitting at number 18. This decline coincides with a significant price drop, with MATIC losing over a quarter of its value in the last 30 days. Analysts like World of Charts point to the descending channel pattern on MATIC’s daily chart, a classic indicator of a bearish trend. For a true price recovery, MATIC needs to overcome a crucial hurdle: the $0.77 resistance level. A breakout above this point could trigger a significant bull run to the $1 dollar level, but the climb won’t be easy. $Matic#Matic Still Nothing Has Changed Consolidating In Descending Channel Successful Breakout Can Lead Massive Bullish Wave In Coming Days https://t.co/RBiSg4kaGb pic.twitter.com/fUwIbyW2hA — World Of Charts (@WorldOfCharts1) April 27, 2024 Pulse On Investor Sentiment The past 24 hours have offered a glimmer of hope for Polygon bulls. The token price surged by 5%, briefly eclipsing the $0.74 mark. This uptick coincides with an improvement in the MVRV ratio, which suggests a rise in the number of profitable MATIC investors. Additionally, the bullish crossover on the MACD indicator hints at a potential increase in buying pressure. However, beneath the surface, some concerning trends remain. MATIC market cap currently at $6.8 billion. Chart: TradingView.com Despite the recent price uptick, data suggests substantial selling pressure on Polygon. The exchange inflow has increased significantly, indicating investors moving tokens onto exchanges, often a precursor to selling. This trend is further corroborated by a rise in MATIC’s supply on exchanges, while the supply held outside of exchanges has dwindled. Related Reading: Render Revving Up: Analyst Predicts Potential Climb To $16 Technical Indicators Paint A Mixed Picture While the MACD offers a glimmer of hope, other technical indicators remain bearish. The Bollinger Bands suggest reduced volatility, which can be a sign of consolidation before a breakout or a further price drop. Both the Money Flow Index (MFI) and Chaikin Money Flow (CMF) have registered downticks, potentially signaling the end of the short-lived bull rally. Polygon’s Path Forward While the technical outlook for Polygon remains uncertain, a complete reversal isn’t out of the question. Continued positive developments within the Polygon ecosystem, coupled with broader market recovery, could propel MATIC upwards. However, overcoming the selling pressure and technical resistance levels will be crucial for a sustained bull run. Investors should exercise caution and closely monitor market developments before making any investment decisions. Featured image from Pexels, chart from TradingView
Several top Ethereum Layer-2 (L2) networks, such as Arbitrum, Optimism, Polygon, zkSync, and Starkware, are preparing to integrate Avail’s Data Availability (DA) solution, according to an April 25 statement shared with CryptoSlate. This integration will grant rollup builders access to Avail DA and its ecosystem, facilitating the development of scalable and efficient rollup architectures across […]
The post Top Ethereum Layer-2 networks adopt Avail DA to boost rollup efficiency and security appeared first on CryptoSlate.
MATIC, the native token of the Polygon network, has had perhaps one of the most disappointing runs of the top cryptocurrencies in the last year. While most of the market rallied to new yearly highs, the MATIC price continued to struggle, leaving investors in massive losses. However, there may be light at the end of […]
The new technology from Union Labs comes after the blockchain interoperability project raised $4 million in November.
P2 was spun out out of Polygon Labs last year and now is allocating funds and mentorship to support project founders, including those focused on the Polygon blockchain ecosystem. A Hadron FC contributor said the community offered the right "capital and vibes."
According to crypto analyst Ali Martinez, Polygon (MATIC) is poised for major gains amidst a wider correction in the past seven days. Polygon is currently down by 9.2% in the past seven days, but the analyst pointed out that MATIC is printing a textbook buy signal on the daily chart. In a recent analysis posted […]
An analyst has explained how a buy signal forming in the price of Polygon (MATIC) could lead to the asset rebounding towards these price targets. Polygon Is Showing A TD Sequential Buy Signal Right Now In a new post on X, analyst Ali has discussed about the a Tom Demark (TD) Sequential signal forming in the MATIC price chart. The TD Sequential here refers to an indicator in technical analysis that’s generally used for pinpointing probable locations of reversal in any given asset’s value. This indicator has two phases to it, the first of which is known as the “setup.” In this phase, candles of the same polarity are counted up to nine, at the end of which the price may be assumed to have encountered a point of reversal. Related Reading: This Bitcoin Indicator May Have Signaled Latest Market Downturn In Advance Naturally, if the candles leading up to the completion of the setup had been red, the reversal would be towards the upside, while green candles would suggest a potential top for the asset. Once the setup is done with, the second phase called the “countdown” begins. This phase works similarly to the setup, except for the fact that it lasts for thirteen candles instead of nine. After these thirteen candles of the same polarity are also in, the price may be considered to have attained another likely point of reversal. Polygon has recently completed a TD Sequential phase of the former type. Below is the chart shared by Ali that shows the formation of this TD Sequential signal for the MATIC daily price. The recent pattern forming in the 1-day price of the cryptocurrency | Source: @ali_charts on X As displayed in the above graph, the Polygon daily price has finished a TD Sequential setup with a downtrend recently. This would suggest that the asset may be at a potential bottom at the moment. “If MATIC stays strong above $0.87, we could see a rebound to $0.95, or better yet, $1!” says the analyst. A potential rally to the former of these targets would suggest an increase of more than 8% from the current price, while a run to the latter level would mean growth of almost 14%. Related Reading: Bitcoin Short-Term Holders Capitulate: $5.2 Billion Sold At Loss It now remains to be seen how the Polygon price will develop from here and if the TD Sequential buy signal will end up holding or not. MATIC Price The past few weeks have been a bad time for Polygon investors as the cryptocurrency’s price has slid down all the way from around the $1.3 level to now the $0.87 mark, corresponding to a drawdown of over 33%. The chart below shows what the trend in MATIC’s value has looked like over the past month. Looks like the price of the asset has plunged over the past month | Source: MATICUSD on TradingView Amid this downward trajectory, the TD Sequential buy signal may perhaps end up being at least a glimmer of hope for the Polygon holders. Featured image from Shutterstock.com, charts from TradingView.com
Although Ethereum and Polygon lead in new users and DeFi volume, Base experiences a user surge and most evenly distributed dApp usage.
Polygon’s CEO Marc Boiron emphatically stated that the layer-2 network was not considering developing layer-3 protocols because of the potential risks they pose to Ethereum’s security. Boiron made this statement on the back of the early success of Degen Chain, a layer-3 network running on the Coinbase-backed scaling solution Base. Layer 3 protocols enhance scalability […]
The post Polygon Labs CEO sees layer-3s like new Degen Chain as a risk to Ethereum appeared first on CryptoSlate.
Polygon once hailed Starbucks
Libre, the institutional Web3 infrastructure platform, has officially launched on-chain, enabling the tokenization of alternative assets following its successful cross-chain transaction on Polygon, according to a March 19 statement shared with CyptoSlate. Libre is a collaborative effort between WebN, a web3 incubator hub, and Japan-based investment bank Nomura’s digital asset subsidiary, Laser Digital. Earlier in the […]
The post Nomura Bank launches Libre with Polygon for on-chain tokenization of alternative assets appeared first on CryptoSlate.
While Ethereum's rollup-centric roadmap could help the ecosystem reach new levels of scale, some developers think relying on third parties to improve access to Ethereum could backfire.
Ethereum's Dencun upgrade enabled a new way of storing data that was forecast to dramatically cut costs for interacting with layer-2 networks.
By plugging into the AggLayer, Astar users will have access to the liquidity in the Polygon ecosystem, allowing cross-chain transactions between Astar and Polygon zkEVM, making the experience feel like a single chain.
Arianee has launched a Polygon CDK-powered layer 2 to issue and manage digital product passports for various luxury brands and companies.
Circle STARKs are supposed to accelerate the proving process for zero-knowledge rollups, according to a white paper published by Polygon Labs and StarkWare.
A newly developed zkEVM prover is set to allow EVM chains to become zero-knowledge proof-powered layers-2s in the Ethereum ecosystem.
Next month, Polygon Labs will launch a protocol to make all blockchains feel like a single network for the end-user.
According to Polygon co-founder Branden Farmer, parallelized EVMs may help to solve the problem of inscription spam.
According to Polygon co-founder Branden Farmer, parallelized EVMs may help to solve the problem of inscription spam.
SOL corrected alongside the wider crypto market sell-off, but data points to more concerning reasons for the price drop.
The Bitcoin ETFs generated strong volumes on Jan. 11, but that did not translate into higher prices in Bitcoin, indicating that the event was largely priced in.
Bitcoin’s sharp fall on Jan. 3 suggests that market participants are nervous ahead of the SEC's long-awaited decision on the spot Bitcoin ETF applications.
Polygon Labs, a developer of scaling networks for Ethereum, has shifted toward "Polygon CDK," a blockchain-development kit powered by zero-knowledge cryptography. The older "Polygon Edge" was used by Dogechain, in an unofficial effort to build a Dogecoin-oriented smart-contracts network.
Bitcoin and select altcoins are witnessing profit-booking on rallies, increasing the likelihood of a short-term pullback.