MATIC, Polygon network’s native token, has experienced a challenging month with a drop of around 25%, erasing its gains from February and part of January.
The drop has also been reflected in its Total Value Locked (TVL), which, despite seeing a minor jump since February to $1.011 billion, is still a far cry from its all-time high TVL of $9.24 billion in June 2021, according to data from DefiLlama.
However, as crypto analysts like Ali Martinez pointed out, MATIC has a glimmer of hope to reach a new all-time high of $3. In a tweet, the pundit highlighted the TD Sequential indicator, which presented a buy signal on the MATIC daily chart.
Other analysts also highlighted bullish scenarios for the crypto asset. Kyle Doops, a crypto analyst on the CryptoBanter YouTube channel, noted that a breakout above $0.96 resistance and a subsequent retest could open the doors for a bullish trend continuation. He also identified a “cup and handle” formation, which signals a bullish trend continuation.
However, amidst the optimism, not all analysts share the same sentiment towards Matic’s prospects. One pundit expressed a more cautious outlook, suggesting that the price might retreat to the $0.80 or $0.82 support levels. Notably, this analyst highlighted MATIC’s breach of the $0.82 support on April 2 and subsequent retest, painting a bearish trend on both daily and 4-hour charts.
That said, despite the downturn in MATIC’s price, the Polygon chain has witnessed a remarkable surge in user engagement and liquidity injection throughout 2024, capturing the attention of the broader market.
On Thursday, the team at Polygon Labs highlighted how Polygon has emerged as one of the most widely utilized and developed blockchains globally. The network witnessed a staggering 91% increase in unique addresses in 2023. This surge in adoption propelled daily active transactions to an unprecedented high, reaching 1.2 million in early March 2024.
Notably, Polygon PoS distinguishes itself by offering a combination of affordability, high speed, and a robust infrastructure encompassing a diverse range of decentralized applications (dApps), developer tools, centralized exchange connections, and more. This makes Polygon a paradigm of a thriving, technologically advanced, and environmentally sustainable network.
Moreover, the Polygon chain has undergone significant enhancements, mainly focusing on asset tokenization. Colin Butler, the Global Head of Institutional Capital at Polygon Labs, recently emphasized the transformative potential of tokenized funds in democratizing access to investment opportunities. This strategic focus has been instrumental in attracting institutional adoption to the Polygon chain, further solidifying its position in the blockchain ecosystem.
At press time, MATIC was trading at $0.88, reflecting a 3.11% drop in the past 24 hours.
