Polygon Matic Down By More Than 20% in a Week Amidst Increased in Onchain Activity

The past seven days have been difficult for the Polygon MATIC market as it’s down by over 20%, as seen in the chart below. This is surprising as MATIC experienced a rally in mid-August, even breaking over some key resistance.

While the crypto market has been up and down for the past weeks, the exact reasons why MATIC’s price has dropped below 20% is unclear.

This decline in MATIC price happens when some key events take place and will happen soon for the token.

On September 4, Polygon will be doing some upgrades by moving from MATIC to POL token, and many exchanges like Binance are prepared to welcome the migration of Polygon’s MATIC to POL.

The new POL token will replace MATIC  as the chain’s native gas and staking asset, and this is part of the rebrand that Polygon has planned since July 2023, where they plan to transition to Polygon 2.0 to help build the project as the value layer of the internet.

As noted by Santiment, the crypto analytics firm MATIC is experiencing an increase in on-chain activity amidst price decline.

Santiment took to X (formerly known as Twitter) and posted about the spike in on-chain activity for Polygon after declining for over six months.

📊 Polygon has been among the many networks declining since crypto's retrace began back in March. However, a notable spike in on-chain activity may be a sign that a MATIC reversal may be brewing soon. Active addresses and dormant coin spikes are common signals preceding this. pic.twitter.com/RY5NXe10ZW

— Santiment (@santimentfeed) August 28, 2024

As can be seen on the chart, the past few days have seen an increase in the on-chain activity, and this is particularly noteworthy as 3,369 MATIC addresses were active on the Polygon network on August 28, the second-highest day of the year—and 69 billion MATIC Age Consumed (Dormant Coin Movement) spike.

As of the time of writing, MATIC is trading around $0.4263, which is a 1.2% increase over the last 24 hours, down by -14.04% in the last month, and also down by -22.41% in the last year.