Polygon Loses 11% Despite Launching on FTX, Bitfinex Thanks To Bitcoin

With the entire crypto market crashing by a staggering 9.64%, there is barely any cryptocurrency that has survived the fall not even MATIC. Even though the network is making developmental advancements it remains thralled by the broader market cues.

MATIC Won’t Make It

Yesterday Polygon added two more milestones to its ever-expanding list of achievements. First of them is the integration of the Polygon Proof-of-Stake Mainnet with FTX. With this users have been enabled to easily deposit and withdraw assets on either chain.

Secondly MATIC staking went live on the digital asset trading exchange Bitfinex. In doing so, users are capable of earning as much as 41.7% staking rewards. In response to the announcement, FTX CTO stated:

“We’re delighted to announce the launch of staking for MATIC… We anticipate a ready uptake for this service, adding to the suite of digital tokens that we have available for staking on the platform.

But ever since EIP-1559 went live on the network, the performance hasn’t been as exceptional as one would expect. 

Week over week transactions on the chain has been reducing by 5.6% with the average transaction per user standing at 9 – 10 txns.

This is because the network has also observed a significant reduction in the active users as since last week more than 28% of users haven’t been active.

But Can Price Action Bring Them Back?

Unfortunately no since MATIC in accordance with the market dip is experiencing an unsure price drop. Building on the already underwhelming week, in the last 24 hours, MATIC lost almost 11% at one point.

The 22.7% plunge witnessed over the week has resulted in the token losing 2 major supports.

First, it lost the 50-day (blue) Simple Moving Average (SMA) and 2 days later it also fell under the 100 day SMA line (red).

Thus if it can reclaim the 100-day SMA within the next 4 days, the coin could head back towards recovery.

Although it could be difficult considering MATIC’s correlation to Bitcoin which is at its highest in 4 months at 0.93. Should Bitcoin continue down the bearish path, it could drag MATIC along with it as well.

However, investors seem to have a lot of faith in the altcoin as at press time exchanges registered 6.5 million MATIC higher buy orders indicating people are ‘buying the dip’.

This could act as a positive supplement against the crashing market.