MATIC climbs 10% as Polygon overtakes Ethereum for active wallet addresses

  • Polygon’s active addresses have surged by 330% in the last three months and briefly surpassed Ethereum’s count.
  • The layer 2 Ethereum scaling solution has achieved exponential growth in a relatively short period.
  • MATIC/USDT pair notched up 10% as a result.

JAIPUR (CoinChapter.com) – MATIC rallied amid parent blockchain Polygon briefly overtaking Ethereum for network users. The MATIC/USDT pair topped $1.15 amid a 10% rally that pulled up prices from the lows around $1.04.

Bullish bets on Polygon’s growth aspects piled up after the platform logged a 330% surge in daily active addresses in the last three months. In addition, investors assessed a bright future ahead for layer 2 Ethereum scaling solutions with Polygon leading the way.

Related: MATIC rebounds 12% amid Bitfinex listing, Osprey’s Polygon Fund launch

Ethereum’s leading layer two scaling solution scored 351,000 daily active users on Monday compared to the original layer one blockchain, which had 326,000 addresses. As a result, MATIC/USDT spot rates climbed nearly 13% but declined due to a brief round profit-taking round that followed next.

Wednesday’s update from co-founder Mihailo Bjelic galvanized the bulls again, leading to MATIC posting a higher low at $1.1.

“Another huge milestone for @0xPolygon!

We eclipsed Ethereum L1 in daily active addresses for the first time! This is just the beginning. We are working round the clock to improve our tech, strengthen our ecosystem and increase adoption.”

said Polygon co-founder Mihailo Bjelic
polygon, MATIC climbs 10% as Polygon overtakes Ethereum for active wallet addresses

Polygon’s Exponential Growth

Polygon has set new records as an Ethereum network amplifier. Data shared by MATIC-centric fundamental analyst Raphael corroborates the same.

In week 38, Polygon logged a 61.59% growth over Ethereum in daily active addresses and 28.52% growth over Binance Smart Chain (BSC). These are new all-time highs. Raphael also noted that the transaction count on Polygon increased 13.42% week over week.

Related: MATIC mooning towards record highs as Polygon furthers entry into DeFi space

The exponential growth in daily active addresses and transactions has made it incredibly cheap to transact on Polygon.

“$MATIC is handling the growth exceptionally well from a transaction cost perspective. Last week the average cost remained well below a cent, at an average price of $0.0059.”

noted Raphael.

NFT Explosion

The analyst pointed out the proliferation of NFTs on Polygon as the dominant reason behind its astounding growth. Quoting OpenSea’s statistics, Raphael demonstrated how the MATIC underpinning platform became the de-facto spot for the NFT crowd.

“Why are users multiplying?

NFT growth on Polygon continues to explode.

Expanding on last week’s analysis: OpenSea, Sept. vs Aug.

+123.8% NFTs sold (+146.15% proforma)

+73.95% Active traders (+91.34% proforma)

-17.12% Volume (-8.83% proforma)”

observed Raphael

MATIC/USDT Looks Bullish

MATIC is currently trading within a Descending Channel setup and with a sideways trend. $1 is acting as strong price support. Bulls attempted a breakout from the channel on September 16 and 23 but were overpowered by bears.

Selling sentiment is high, but the MATIC/USDT pair entered the Bollinger Squeeze formation, indicating a volatile price move will follow soon. However, the move leans to the upside in this case, as the relative strength index (RSI) is an uptrend, signifying increasing bullish confidence in MATIC.

MATIC looks to break out to the upside
MATIC looks to break out to the upside. Source:  MATICUSDT on TradingView.com

Buyers must attempt to close above $1.2 and later above $1.5 for MATIC/USDT to resume a sustained move upwards.

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