- The Polygon network experienced a divergence between its network growth and price movement.
- The migration of Y00ts NFT to Polygon could boost network growth and MATIC’s price.
The Polygon [MATIC] network has been going through a fascinating phenomenon where its network growth and price movement diverged. Despite this, there is reason to believe that an uptrend in one of these metrics could propel the token, but only if it can be sustained over time.
Read Polygon’s [MATIC] Price Prediction 2023-2024
The positive and negative Polygon divergence
According to data from Santiment, Polygon’s network growth declined on 21 January and continued to do so until around 19 February. Interestingly, during this period of network decline, the price of MATIC moved in the opposite direction.
However, this divergence was not a positive sign, as it lacked new addresses to contribute to transaction volume, resulting in a bearish trend.
Due to the bearish divergence, the price of Polygon’s token experienced a sharp decline of up to 40%. However, things looked up in March as the network growth increased again, coinciding with a correction in the MATIC token’s price.
This time around, the divergence between network growth and price was bullish, and it is expected to impact the price of MATIC positively going forward.
MATIC price trend and 30-day MVRV
After reaching the $1.5 price level on 17 February, MATIC’s price has been on a consistent downtrend, resulting in a loss of almost 30% in value. As of this writing, the token was trading at around $1.1 with a gain of over 1%.
The Moving Average Convergence Divergence (MACD) indicator suggested that Polygon was in a bearish trend at press time. The MACD flipped below the zero line on the daily time frame, indicating a bearish trend. However, the bearish trend was relatively weak.
Furthermore, the 30-day Market Value to Realized Value ratio (MVRV) of MATIC has been below zero since 18 March. As of this writing, the MVRV stood at -2.64%. It reflected the recent decline in price and suggested that the token was slightly undervalued.
Can NFT addition boost network growth?
A recent development on the Polygon network was the migration of Y00ts’ NFT to the network. As of Polygon’s post on 30 March, Y00ts had already completed over 75% of the migration process.
Moreover, the NFT trade count also increased significantly, especially since 15 March. As of this writing, the total NFT sales volume has exceeded 3 million. With the migration of Y00ts to the Polygon system, an uptick in the network’s growth is expected as new users flocked to the network.
How much is 1,10,100 MATIC worth today?
If the network growth on Polygon continues to rise, the price of MATIC could see a surge. The rise in network growth indicates that more addresses are being created, increasing the number of transactions being processed.
As a result, there is a strong likelihood for an uptick in demand for the MATIC token, which could drive up its price.