Polygon’s MATIC: From Developer Boom to Market Challenge
  • Polygon’s network enjoys new features that attract developers to build on the platform, which not only paints a bullish outlook for the native token MATIC, but also ensures its utility.
  • MATIC has struggled to rally in recent days and faces further challenges going forward as exchanges receive more inflows of MATIC holdings.

The Polygon network is showing signs of significant movement, but whether its native token MATIC is bullish or bearish remains to be determined. In 2023, Polygon was one of the major projects focused on construction. The development team focused on upgrading and releasing new features throughout the year. This is evidenced by increased adoption and a steady increase in the number of developers.

According to a recent report, the network ranks second after Ethereum in terms of the number of new developers. Furthermore, according to the data collected, the network holds the 39th place with 4,409 GitHub commits at the time of writing. Despite these developments, MATIC prices struggled to rise due to broader bearish trends in the market.

However, developer activity is down 45.86% compared to last month, indicating a decline in developer interest. MATIC, on the other hand, got off to a strong start this year, but its price has been flat in recent days.

At the time of writing, MATIC’s price is $0.7529.Altcoins have mostly fallen in the past 24 hours Five% Its value decreases and weekly losses grow as follows: 15%. With a market capitalization of just under $7 billion, Ethereum Layer 2 Scaling Solutions is a cryptocurrency that has fallen out of the top 10 coins on the market and currently ranks 16th in terms of market capitalization.

Unsurprisingly, trading volumes have plummeted in recent days. Santiment data shows a decline in MATIC trading volumes. As of January 11th, trading volume was $800 million, but by January 17th it had fallen to approximately $313 million. At the time of writing, trading volumes have recovered and are at just over $500 million.

Notably, bankrupt crypto financier Celsius has transferred some of its MATIC holdings to various exchanges. This signals an impending decline that will put significant pressure on MATIC and could lead to even lower lows.

Polygon 2.0 could be the catalyst for the MATIC rally

As CNF reported last year, Polygon announced ambitious plans to rebrand its network. Polygon 2.0 proposes new capabilities to refresh and restructure the entire architecture of the Polygon ecosystem. Following these plans, market sentiment is broadly bullish for network developers, polygon traders, and crypto investors.

In addition to the network makeover, Polygon announced the next technology offering for Polygon 2.0: POL. Upgraded token for Polygon protocol.

This technological development could be a major boost for the token as it renews investor interest. The broader bullish outlook for the market may also play a role in keeping the token on an upward trajectory in the long term.

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