Santiment analysts record a sharp surge in the popularity of MATIC

The company used metrics such as social trends, supply distribution, social dominance, supply on exchanges, and MVRV 7D

07.11.2022 - 15:45

316

3 min

What’s new? Experts from analytics company Santiment reported an increase in the popularity of the native token of the Polygon network, MATIC. For the analysis experts used such metrics as social trends, supply distribution, social dominance, supply on exchanges, and the market value to realized value ratio on a weekly basis (MVRV 7D). As of November 7, 14:00 UTC, the asset is trading at 1,1967, having gained 3,98% per day and 28,42% in a week, according to Binance.

Santiment’s data

What do analysts report? Analysts attribute MATIC’s sharp surge in popularity to Meta adding support for Polygon to issue and sell non-fungible tokens (NFTs) on Instagram.

According to analysts, MATIC’s popularity is also explained by the fact that financial conglomerate JPMorgan and the Monetary Authority of Singapore (MAS) did their pilot trade

using decentralized finance (DeFi) on Polygon.

This is a BIG step up for DeFi ✨World's largest bank, JP Morgan @jpmorgan and Singapore’s regulatory authority @MAS_sg did their first “LIVE” Trade in DeFi 🙌#onPolygon Read more: https://t.co/JSh1wKV3ZR — Polygon - MATIC 💜 (@0xPolygon) November" class="redactor-linkify-object">https://twitter.com/0xPolygon/status/1588007605213... 3, 2022

MATIC’s supply on exchanges continues to fall even after the rapid rise in prices. This suggests that people are confident of a further increase in the value of the asset, analysts said. They recorded a sharp drop in supply on exchanges on October 11, indicating a large accumulation during that period. Santiment suggested that someone may have known about the coming events to make such a confident bet on MATIC.

In terms of social dominance, MATIC is also showing the highest spike in the past three months. Analysts noted that this coincides well with the surge in network growth, “as these newcomers shill one another MATIC and quickly get super excited when the price just keeps going up.”

MVRV 7D, which measures the short-term profit or loss of holders, shows that MATIC was in the danger zone on November 4. The $0,95 level historically saw the asset’s price decline shortly after forming a local top.

Earlier, Flipkart, India’s e-commerce giant, and eDao, a Polygon-incubated Web3 entertainment firm, launched a joint project that allows customers to pay for purchases in the Flipverse metaverse.

In October, Brazilian online bank Nubank announced the creation of a Nucoin token based on Polygon. The initiative was launched as part of a rewards program for 70 million customers across Latin America.

Author: