- MATIC took advantage of the altcoin’s latest resurgence, marking a decoupling trend from Bitcoin.
- The Polygon zkEVM network provided optimism as it saw a 40% TVL increase and reached an all-time high.
Amid the recent rise in Bitcoin’s price, several altcoins have taken the opportunity to shine. More specifically, Polygon [MATIC] experience a significant boost.
Realistic or not, here is the market cap of MATIC in terms of BTC
MATIC on the rise
The recent rise of MATIC can be attributed to the broader resurgence of altcoins that coincided with the rise of Bitcoin. [BTC] final step past the $30,000 mark.
Unlike previous instances where Bitcoin’s rise overshadowed other digital assets, this time altcoins like MATIC have shown a notable decoupling from Bitcoin’s price, as reported by Santiment.
? unlike #Bitcoin‘s previous two short visits to $30,000, this latest break of the resistance level to end the weekend has occurred #altcoins rise, instead of falling behind $BTC‘s price. $LINK, $MATIC, $UIP, $APTAnd $AAVE all see their best performing disconnects of 2023. pic.twitter.com/ci7MPh25yf
— Santiment (@santimentfeed) October 23, 2023
On October 12, MATIC faced a key test as it approached the $0.501 support level. The token not only overcame this hurdle but also rose by an impressive 25%. At the time of writing, MATIC was trading at $0.634, reflecting its substantial growth in a short period of time.
Despite the price rally, the Chaikin Money Flow (CMF) for MATIC fell to -0.07, indicating a bearish trend in money flow. However, the Relative Strength Index (RSI) remained remarkably high at around 75.99, indicating strong bullish momentum.
Source: trading view
While the number of MATIC holders increased with the price increase, there was a notable decline in network growth. This trend indicates a reduced frequency of new addresses conducting MATIC transactions.
Source: Santiment
A huge spike in activity
Conversely, the operational aspects of the protocol have been significantly improved. The number of daily active addresses on the network has experienced a significant peak in recent days. In addition, the number of transactions within the protocol, including daily transactions, also increased.
Source: Artemis
However, the DeFi sector on Polygon presented a less optimistic picture. According to Artemis data, the Total Value Locked (TVL) in the protocol experienced a significant decline. Additionally, Decentralized Exchange (DEX) volumes on the Polygon network remained stagnant, indicating a lack of substantial activity.
Source: Artemis
Is your portfolio green? View the MATIC Profit Calculator
Despite these challenges, there was a glimmer of hope for Polygon, powered primarily by the Polygon zkEVM network. This solution witnessed an impressive 40% increase in TVL, reaching an all-time high.
This achievement indicated the potential for increased adoption and networking activity in Polygon’s ecosystem.
All TIME HIGH
Polygon zkEVM has hit a new ATH in TVL and is up over 40% in the last 30 days. pic.twitter.com/LA27j68u9n
— Today in Polygon (@TodayInPolygon) October 20, 2023