bullish

Value

Uniswap

DeFi

Polygon

MATIC bulls fumbled the bag after the market panic that turned the correction phase into a nosedive. The <a href="https://www.coingecko.com/en/coins/polygon" target="_blank" rel="noopener nofollow">latest</a> market data shows MATIC took a beating with a 33% wipe in value since last week. Hostile market environment and <a href="https://www.investing.com/news/economy/rba-preview-rate-hike-unlikely-but-hawkish-hold-on-tap-amid-sticky-inflation-3553832" target="_blank" rel="noopener nofollow">macroeconomic fears</a> continue to plague the broader financial world. 
The crypto market was not spared. The whole market <a href="https://www.coingecko.com/" target="_blank" rel="noopener nofollow">depreciated</a> by almost 17% in the past 24 hours, marking a period of strong bearish pressure. Despite the overwhelming downward trajectory the market has taken, on-chain developments continue that might slow the bearish wave, but it will take time before the price mediates back to realistic levels.&nbsp; 
<img loading="lazy" decoding="async" class="wp-image-633140 size-full" src="https://www.newsbtc.com/wp-content/uploads/2024/08/a_ccf5f8.png?resize=671%2C317" alt="" width="671" height="317" srcset="https://www.newsbtc.com/wp-content/uploads/2024/08/a_ccf5f8.png?resize=671%2C317?w=671 671w, https://www.newsbtc.com/wp-content/uploads/2024/08/a_ccf5f8.png?resize=671%2C317?w=460 460w" sizes="(max-width: 671px) 100vw, 671px" data-recalc-dims="1"> 
<h2 id="strong-more-developments-strong">More Developments</h2> 
Polygon’s position continues to solidify as it marks several developments that improve user experience on the platform. Messari, an independent crypto research platform, recently <a href="https://messari.io/report/polygon-ecosystem-overview?utm_source=twitter&amp;utm_medium=organic_social&amp;utm_campaign=polygon_ecosystem_overview&amp;utm_content=research" target="_blank" rel="noopener nofollow">released</a> its report, providing an overview of the Polygon ecosystem. 
In summary, the report notes several developments in the platform that occurred within the 2nd quarter of the year. Primarily, the community has reached a consensus on upgrades that will positively affect the network’s usability and performance. One of these will be the switch from MATIC to POL, which is <a href="https://polygon.technology/blog/save-the-date-matic-pol-migration-coming-september-4th-everything-you-need-to-know" target="_blank" rel="noopener nofollow">scheduled</a> to occur on September 4th.&nbsp; 
<img loading="lazy" decoding="async" class="size-full" src="https://www.tradingview.com/x/tp1n5juV/" width="1835" height="883"> 
To attract devs to Polygon, the platform created a $1 billion Community Grants Program (CGP), supporting devs and builders of Polygon financially. According to a June <a href="https://polygon.technology/blog/1-billion-unlocked-over-decade-in-community-grants-program-for-polygon-builders" target="_blank" rel="noopener nofollow">blogpost</a>, Season 1 of the CGP will feature a 35 million MATIC pool which is roughly equivalent to $12.9 million using today’s prices.&nbsp; 
Uniswap has also launched its Uniswap v3 campaign on Polygon with other $250k in rewards on Oku, a crypto trading platform. This will boost investor confidence in the platform as it shows that despite hostile market conditions, Polygon remains a major player in the DeFi space.&nbsp; 
This is seen in the current metrics the platform is running on. Nansen’s <a href="https://app.nansen.ai/macro/blockchains?chain=polygon&amp;tab=overview" target="_blank" rel="noopener nofollow">data</a> shows an increase in active addresses and transactions in the past 24 hours, a great indicator of growth activity if it wasn’t for the air of bearishness surrounding the market. 
<img loading="lazy" decoding="async" class="wp-image-633136 size-full" src="https://www.newsbtc.com/wp-content/uploads/2024/08/a_4c7a63.png?resize=711%2C416" alt="" width="711" height="416" srcset="https://www.newsbtc.com/wp-content/uploads/2024/08/a_4c7a63.png?resize=711%2C416?w=711 711w, https://www.newsbtc.com/wp-content/uploads/2024/08/a_4c7a63.png?resize=711%2C416?w=460 460w" sizes="(max-width: 711px) 100vw, 711px" data-recalc-dims="1"> 
<a href="https://defillama.com/chain/Polygon" target="_blank" rel="noopener nofollow">DefiLlama</a>, on the other hand, shows the other side of the coin with major outflows on all chains under the Polygon ecosystem.&nbsp; 
<h2 id="strong-matic-more-pain-on-the-way-for-investors-strong">MATIC: More Pain On The Way For Investors?</h2> 
As the market continues its painful descent, investors are poised to let go of their MATIC holdings. <a href="https://cryptoquant.com/asset/matic/chart/exchange-flows/exchange-outflow-total?exchange=all_exchange&amp;window=DAY&amp;sma=0&amp;ema=0&amp;priceScale=log&amp;metricScale=linear&amp;chartStyle=column&amp;from=1720108800000&amp;to=1722873599999&amp;img=link%2F66b08b650b1339737dced468.png" target="_blank" rel="noopener nofollow">Recent</a> market data shows that investors are rushing to exchanges to sell rather than hold and ride the bearish wave.&nbsp; 
This can be seen in MATIC’s price which continues to test the $0.339 support level. 
The market overreaction caused by cascading fears within the broader financial spectrum remains to threaten any future bullish action. As of the moment, MATIC is down to March 2021 levels, a new low after 2024’s early bull runs led by major cryptocurrencies like Bitcoin and Ethereum. 
Investors and traders should evaluate their positions to remain in the green. If possible, they can try to take advantage of the situation by shorting the token.&nbsp; 
Featured image from Pexels, chart from TradingView

MATIC: Market Nosedive Leads To 30% Wipe In Value

Table of Contents

NewsBTC

Other articles published on Aug 5, 2024

Australian Federal Police Targets 2,000 Crypto Wallets In Nationwide Sweep—Here’s How

Pepe Price Prediction: PEPE Plunges 16% Amid The Crypto Crash, But This Pepe 2.0 Secures $7.3M In...

🐧 Welcome to PengyOS

Arthur Hayes Explains Why Bitcoin’s Price Dropped

Reasons Why Bitcoin Price Crash Could Continue

Why are crypto markets crashing? Liquidations hit $1B in 24 hours!

Join our free newsletter for daily crypto updates!