MATIC’s trading rate has increased by 35% in the last 24 hours. With rising trading volume and market capitalisation, MATIC’s rally is likely to be only getting underway. The controversy over how powerful and flexible sidechains are has recently become irrelevant. MATIC is the most liquid token that actually reflects Ethereum’s new scaling story.
With Curve and AAVE already providing support, MATIC’s market capitalisation is projected to rise further. On-chain momentum is bullish, and strong HODLers have a concentration of more than 90%. This is a good indication for MATIC’s run to $2 this week.
The price of the altcoin was $0.585. Furthermore, MATIC’s number of sales and on-chain operation surpassed those of DOT and ADA, MATIC’s rivals in terms of market capitalisation, supporting the existing bullish narrative.
MATIC Volatility vs Trade Volume Chart || Source: Lunarcrush
According to the above map, the decrease in volatility two days ago corresponded with an increase in volume, and this has become a pattern for MATIC. When uncertainty rises, the price either stays rangebound or falls. The current rise in volatility is followed by an increase in trade value, which is bullish for the price.
Several ventures have entered the Polygon expansion narrative, contributing to the growing TVL. At values below $2, the altcoin remains undervalued. The most recent ATH was reached a few hours earlier, when the price reached $0.744. Thanks to Ethereum’s persistent scaling issues, MATIC’s layer two approach has emerged as a top competitor.
This has contributed to the demand across spot exchanges as altcoin prices are recovering from the past weekend’s dip. This is evident from the increased inflow of money, an increase of 3.23% based on data from intotheblock. 100% HODLers are profitable at the current price level, there are sellers taking profit, however, the selling pressure has not affected the price level.
The price has defied selling from both online traders and HODLers, as it has led the ETH trend and altcoin rally. The altcoin is now ranked 39, thanks to a 46 percent rise in totally diluted market capitalisation. Currently, 52 percent of MATIC’s stock is in circulation, providing liquidity for the price to reach the current ATH. Based on the above metrics and on-chain review, a further price rally to $2 is anticipated.