What should you watch out for when investing in MATIC?
MATIC has grown tremendously, growing 376.61% since the start of the year, just like its polygon blockchain.
However, the question “should invest” will always be there. While much of this suggestion sounds promising, there are several factors that investors should consider before making a decision.
Is MATIC promising?
Has polygon notification on preparing MATIC’s listing on Bitfinex – the 10th largest centralized exchange (CEX) with a daily trading volume of nearly $ 600 million. This will be a great opportunity to expand MATIC’s user base.
Polygon has also taken the NFT hype into account by offering gas-free NFT casting. In addition, compatibility with Ethereum Virtual Machine (EVM) enables these NFTs to be ported to Ethereum relatively easily. This helps investors save high casting costs. Such a strategy will surely get more people to join the network.
In addition, the announcement of the listing at Bitfinex takes place at a time when participation in Polygon has already made great progress and over 176,000 daily active users have registered in the network in a week.
MATIC daily active users | Source: Polygon
In addition, there are an average of 6.08 million on-chain transactions per day. And even better when the transaction cost is only $ 0.0045.
MATIC daily transactions | Source: Polygon
The biggest contributor to these numbers was Polygon’s growth in NFT performance, as users grew 8.45 times in one month. This has resulted in network values hitting a 20-day high at the time of going to press.
But why is it all so good?
Well, despite the 28% decline and subsequent 14% increase, the whales have remained motionless. Looks like you expect more movement from MATIC. However, news about network developments have made some investors optimistic.
Buy orders increased more strongly than sales orders with a margin of MATIC 4 million.
MATIC buy and sell orders | Source: Intotheblock
However, this didn’t stop the liquidation of $ 2.5 million a day ago.
Also, the network must build its user base deeper if it is to get stronger. Currently only 30% of all addresses on the network have a balance.
MATIC sales address | Source: Intotheblock
And due to the small user base, MATIC is not swapped very often, which has resulted in the price falling to a 2-month low.
MATIC trading speed | Source: Santiment
For this reason, bullish investors need to be careful as price action is dormant and the likelihood of a decline is as high as the possibility of an increase.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
According to AMBCrypto