Polygon (MATIC) saw significant growth in 2021 but has since experienced a decline in transactions, raising concerns about its future.
Examining the current state of Polygon
Polygon, an Ethereum blockchain scaling solution that aims to enhance the network’s scalability and reduce transaction costs, has been a subject of interest and speculation among crypto enthusiasts.
However, recent data reveals its transaction volume is falling. According to a tweet by analytics blockchain analytics firm IntoTheBlock, Polygon’s daily transaction count has plummeted to approximately 2,000, marking an 81.38% decline from its peak earlier this year.
Additionally, recent reports suggest that zkSync, an Ethereum developer platform, is gaining considerable momentum, surpassing Polygon in terms of total value locked
This metric indicates the growing competition within the Ethereum ecosystem and presents a challenge to Polygon’s leading position.
Analyzing Price Movements
As of today, the price of MATIC stands at $0.864737, reflecting a 2.46% decline in the last 24 hours, according to data from Coingecko.
This drop in price might be attributed to short-term market fluctuations and investor sentiment. However, in the weekly time frame, MATIC has experienced a 0.67% price increase.
Polygon’s market capitalization currently stands at $8,014,165,572. With a circulating supply of 9.3 billion MATIC tokens, Polygon holds a substantial market share.
Technical analysis provides insights into the key support and resistance zones for MATIC. The nearest support zone for MATIC is $0.75.
If the price were to decline further, this support zone may act as a cushion, attracting buyers and limiting downside movement. Conversely, the nearest resistance zone for MATIC is $1.00, which was previously a support level.