polygon (MATICThe number of transactions on the ) network has been on the rise lately. In addition to this development, the MATIC price also performs quite well. So, does the price have the power to sustain this performance?
According to on-chain data provider IntoTheBlock polygon trading volume has increased. According to the data, the total trading volume reached $260 million on December 12. Moreover, this represents a 900% increase compared to the $26 million recorded the previous day.
The increase in volume even eclipsed the seven-day average of $170 million per day. However, according to IntoTheBlock, trading volumes hit a monthly peak of $511 million on December 7.
The increase may be a harbinger of major price movements for MATIC. These volume gains have become more frequent in recent weeks after several months of very low volatility for the asset.
Polygon Network Remains Stable
The number of transactions that took place on the Polygon network was recorded as 4220 on December 12. The total volume was recorded as 292 million MATIC tokens. Looking at the general picture, the transaction volume continues to increase since the recession at the end of September and the beginning of October.
According to Glassnode, the number of Polygon active addresses also increased by 31% on December 12. This is data consistent with volume growth. However, active addresses on the network are in a bearish trend after hitting the last three-month high of 9,159.
According to Glassnode, the total addresses on the network have now reached an all-time high of 1.6 million. It has also increased by 64% since the beginning of the year. The biggest reason for this increase is the increasing interest in Layer-2 solutions.
Indeed, DeFi on the Polygon network has taken a hit this year. According to DeFiLlama, the total value locked in the network is currently around $1.14 billion. This represents an 81% drop since the beginning of the year. However, a similar situation was seen for the entire DeFi ecosystem.
MATIC Price Forecast
MATIC, for some time cryptocurrency continues to outperform the market. With a total market cap of $8 billion, the altcoin is in the top 10 in terms of total value.
MATIC price gained 1.7% on the day to reach $0.901. Also, the asset has gained 9.5% over the past two weeks.
MATIC is down 69% from its all-time high of $2.92 this time last year. However, this decline is not as deep as many other altcoins that have lost more than 85%.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.