MATIC needs it to compete against BCH, UNI, ALGO. to be ahead of the game

This week has proven productive for most of the crypto market, with many altcoins even breaking records, like the Polygon network’s MATIC token. With the price rise, investor sentiment has also become more optimistic and MATIC seems to have enjoyed its good days. But the downward movement of some investors could actually cause MATIC to slow its growth.

MATIC overcome lots of altcoins

A price increase of more than 30% per week has brought MATIC past several large coins in the top 20 cryptocurrencies. With a market cap of $ 13.24 billion at press time, MATIC has overtaken BCH, UNI, ALGO and Stablecoin BUSD to take 18th place.

MATIC 4-hour chart | The source: TradingView

Polygon has evolved on many fronts to make it accessible to everyone using a variety of methods. Running India’s first BUILDIT hackathon is one such endeavor. In fact, the company recently invested in Asia’s largest NFT market called Colexion to expand its reach in that market. In this way, investments become not only development but also an instrument for their expansion.

But first we need to discuss investor movements that could stifle Polygon’s growth.

What did the polygon investors do?

Due to the sharp rise in the share price, most investors take advantage of this opportunity to take profit and we can also see this result through on-chain indicators. As the momentum set in, investors began selling too, and more than $ 100 million MATIC, valued at nearly $ 200 million, were sold in less than 10 days.

MATIC supply on the stock exchange | The source: mood

The majority of these sellers are also Long Term (LTH) owners who used 26.9 billion days in 3 days.

Age of used coins | The source: mood

Profit-taking is not a bad idea when the market is weak or a potential turnaround is anticipated. However, profit taking when the asset is in a continuous strong uptrend will have an adverse effect.

As a result, MATIC has decreased by almost 3% in the past 24 hours. This could be the reason why investors suffered losses even though the MATIC owners were profitable all October: Thanks to the good operating results, investor returns rose from 44.16% to 44.16% to 93.24% at the time of writing.

Number of profitable addresses (Green) | The source: In the block

In addition, increased profits also led to increased participation as the number of active addresses as well as new addresses exploded this week.

Number of new (blue) and active (green) addresses | The source: In the block

Therefore, if investors want to keep the above bullish stats and don’t want to reverse the uptrend, it is best to buy HODL MATIC instead of massively selling.

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Minh Anh

According to AMBCrypto

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