Recent developments suggest that Polygon’s native token, MATIC, might be poised for a resurgence. On-chain activity for the Ethereum layer-2 network has surged, indicating a possible trend reversal, even though MATIC’s price remains subdued.
Blockchain analytics firm Santiment reported a “notable spike” in active addresses and previously dormant coins coming back to life on August 28. This uptick in on-chain activity could signal an impending turnaround for MATIC, which has struggled to gain momentum recently.
Spike in On-Chain Activity Offers Hope
Santiment shared a chart revealing a significant increase in dormant token movement this week. This surge aligns with the second-highest number of Polygon addresses interacting with the network this year. The data suggests that this activity could be a precursor to a price reversal.
However, this spike in activity follows a downward trend. Data from Polygonscan, a blockchain explorer, shows that address activity on the network began to decline in late July, dropping from 1.6 million active addresses to just 70,000 by late August—a sharp 50% decrease. Additionally, daily transactions have decreased from over 5 million in March to around 3 million in late August.
MATIC Price Struggles Despite Activity Surge
Despite the recent increase in on-chain activity, MATIC’s price continues to languish at bear market levels. On August 25, MATIC briefly surged to a two-month high of around $0.58 but quickly lost momentum, falling back to $0.437 by August 29. The token is now down 24% over the past ten days and remains 85% below its all-time high of $2.92, reached in December 2021, according to CoinGecko.
Upcoming Token Migration and Security Concerns
In other developments, Binance announced on August 28 that it would support the upcoming network token migration from MATIC to POL, scheduled for September 4. This migration could impact MATIC’s future price and utility.
However, the Polygon community faces challenges beyond price struggles. On August 24, the Polygon Discord channel was compromised in a widespread attack that affected several blockchain projects’ Discord servers, raising concerns about the security of the platform’s community channels.
