- The rising demand for Polygon (MATIC) has fueled speculation of an impending bull run.
- Retail user activity on the Polygon network has increased, while whale investors have been accumulating MATIC tokens, indicating growing confidence in the market.
For the first time since the SEC lawsuit, the price of Polygon’s MATIC token has surpassed the critical resistance level of $0.70, sparking speculation of a potential bull run. Although the MATIC price has yet to fully recover, the Polygon network has witnessed a surge in user traction, indicating a growing demand for the cryptocurrency.
In June, the price of MATIC plummeted to a 2023 low of $0.55 after being labeled a ‘security’ in the SEC lawsuit. However, since then, MATIC has experienced a 31% gain, rebounding above $0.71 on July 5.
Retail user activity on the Polygon network has played a significant role in driving up demand. The number of MATIC Daily Active Addresses (7d) has steadily increased from 1.3 million users on June 27 to 1.34 million active users as of July 6. Active Addresses (7d) tracks daily user activity by summing up the number of wallet addresses involved in transactions over a seven-day period. This rise in user demand has put upward pressure on the MATIC price, and if the trend continues, it could quickly reverse the recent price correction.
Notably, it’s not just retail investors who are contributing to the growing demand for Polygon. Whale investors, holding between 10 million and 100 million MATIC tokens, have been accumulating the cryptocurrency. Data from on-chain sources reveals that these whale investors have added 26 million MATIC tokens to their wallets since the beginning of July. With a current market value of $17.4 million, this accumulation demonstrates their growing confidence that concerns stemming from the SEC lawsuit will eventually fade away.
In conclusion, the rising demand for Polygon (MATIC) has sparked speculation of an impending bull run. The increased retail user activity and bullish accumulation by whale investors indicate growing confidence in the market. While the majority of MATIC addresses currently face potential losses, the evolving dynamics of address activity and the ability to surpass resistance levels will ultimately determine the future trajectory of the MATIC price.