- Polygon’s volume, revenue and costs have all fallen over the past 30 days.
- MATIC’s momentum has been bearish and another pullback could be imminent.
The daily transaction volume of 30 days on the Polygoon [MATIC] network dropped 31.7%, according to a post shared by Artemis. The cryptometry terminal discovered that the volume on Polygon on January 18 was $3.35 million.
However, Polygon was not the only project to experience such decline. Like Solana [SOL] and BNB Chain also fell into the same group.
Here are the daily transaction volumes for the past month.
1. Solana: 22.7 million
2. Tron: 4.8 million
3. Sei network: 4 million
4. BNB chain: 3.8 million
5. Polygon POS: 3.3 millionAlthough there is a decrease from the previous month, we can see some newcomers. pic.twitter.com/vHYmlIjkek
— Artemis (@artemis__xyz) January 18, 2024
Until the last line
The decrease in volume resulted in a decrease in purchase and sale transactions involving MATIC. Because volume is expressed in monetary terms, it also affects the value of a cryptocurrency.
For example, when AMBCrypto reported increases in Polygon’s volume, MATIC’s price consistently rose.
The recent volume decline has therefore also affected the price of MATIC. At the time of writing, MATIC was valued at $0.79, representing a decline of 13.47% over the past seven days.
Falling volume with falling prices is evidence of a decline in demand. If no buyers enter the market at this stage, the price may continue to fall.
This was the situation at MATIC as it threatened to fall to $0.70. On the other hand, if buying pressure arises at any point, MATIC’s direction could shift upward.
Also AMBCryptos analysis Polygon’s fees appeared to follow the same path as volume and price. At the time of writing, data from Token Terminal showed that revenue was down 33.2% over the past 30 days.
Source: Token terminal
An in-depth review of the data found that December 28 was the last time Polygon earned fees worth more than $100,000.
Fewer bridges, lower prices
When we considered the Net Value Bridge (NVB) on Polygon, we found this to be the case dropped. The NVB refers to the value of assets bridged to the Polygon Proof-of-Stake (PoS) network. However, this metric does not take into account the assets tied back to Ethereum [ETH].
If the NVB increases, it means that the health of the project is high and the utility is impressive. So the decline here suggests that the validation of Polygon transactions has slowed.
Source: L2BEAT
According to the price action, the 4-hour chart showed that MATIC had become persistently weak. First, it lost its hold at the $0.83 support on January 17. A day later, the bulls were unable to defend the $0.80 area.
How much are 1,10,100 MATICs worth today?
Signals from the RSI indicated that buyers were making attempts to revive the price. However, if the RSI does not reach at least 44.40. MATIC could fall to $0.75.
Furthermore, On Balance Volume (OBV) showed that public sentiment is not predicting a bullish outcome as volume failed to close higher.
Source: TradingView