On-chain data shows that some activity metrics related to Polygon have surged recently, which could be positive for the asset’s price.
Polygon Active Addresses & Age Consumed Have Spiked Recently
In a new on X, the on-chain analytics firm Santiment discussed the latest trend in two MATIC indicators. The first is the “Daily Active Addresses,” which tracks the total number of addresses participating in some kind of transaction activity on the network every day.
The unique number of active addresses can be considered the same as the unique number of users participating in network activities, so the value of this metric tells us about the amount of traffic that the blockchain is observing right now.
When the indicator’s value rises, more users are becoming active on the network. Such a trend implies that cryptocurrency is attractive to investors.
On the other hand, the metric registering a decline suggests investor interest in the asset could be declining as fewer users make transfers on the blockchain.
Now, here is a chart that shows the trend in the Daily Active Addresses for Polygon over the past few months:
The value of the metric appears to have spiked in recent days | Source:
The above graph shows that the Polygon Daily Active Addresses has recently experienced a surge. At the peak of the latest spike, 3,369 MATIC addresses made transactions on the network, the second-highest value for the year.
Thus, investors appear to have been actively engaged on the network recently. It can generally be hard to say what the consequences of such activity may be for the asset, as both selling and buying activity would be flagged up in the indicator.
One thing that can generally be said is that high user activity may lead tocryptocurrency volatility. In the current case, though, there may be one other hint: the surrounding price action.
Interestingly, the largest spike in the indicator only came just after MATIC’s latest price decline, which could imply that investors may be rushing to buy the dip. If this is the case, then Polygon could benefit from a turnaround in the activity.
The second indicator in the chart is the “Age Consumed,” which tells us whether dormant coins are on the move. From the chart, it’s visible that a large number of old tokens appear to have moved on the network during the latest activity rush.
This can be a mixed signal, as it could suggest that the asset’s diamond hands are selling. It’s also possible that these investors have only shifted the coins for some other activity, as the last Age Consumed spike of a similar scale proved bullish for Polygon.
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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