Overall, the final quarter of 2021 was relatively optimistic. Thanks to independently oriented price movements, the coins of Layer 1 protocols such as SOL, LUNA and MATIC increased significantly. In fact, at the time of writing, with the larger market performing well, MATIC has created a new ATH that has given this story a boost.

Polygon’s native MATIC token hit a new all-time high (ATH) of $ 2.9 on December 27 as the festive uptrend boosted the overall market. Therefore, MATIC’s most recent pricing is not due to major market movements, but rather to measures and a growing interest in the network.

Source trade view

MATIC flies high

Thanks to a well-developed network and a large number of active addresses, MATIC price recently broke its ATH and has been in a strong upward trend since December 15th. The high activity frequency of the addresses shows that Polygon Network is getting more and more interest. The network currently has over 8,000 daily active addresses, placing MATIC in the top 5 most active and most frequently used coins.

The source: Sanbase

The HODLer allocation by concentration shows that whales own more than 75% of the total supply. MATIC whales have between 1 million and 10 million coins that are comfortably piling up by the recent rally, while smaller whales do the same.

The MATIC balance on the exchange has fallen to its lowest level as many coins leave the exchange amid positive sentiment. In addition, both the large volume of trading and the high volume of trading are increasing, which shows that institutional investors are more interested when the big players take over the market.

The source: IntoTheBlock

MATIC fundamentals look good and prices are healthy, but what does this surge say about the market?

Rising MATIC could indicate …

The most recent MATIC rally took place on its own as the correlation with BTC hit an all-time low.

Source: IntoTheBlock

Previously, SOL and LUNA worked similarly as their correlation with BTC was approaching the lower bound.

MATIC’s profitability is an indication of the evolution of the Layer 1 protocol, as many analysts pointed to an increase in capital inflows into networks such as Polygon, Solana and Terra over the past month. In terms of price, MATIC operates in pricing mode, just like LUNA and SOL in previous rallies.

As institutional and retail interest in Layer 1 skyrocketed over the past year, their overall locked-in value rose dramatically. So it looks like Layer 1 will be operational in 2022 as long as network growth and on-chain activity are sustained.

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