MATIC/$Pol price is in the red but the Polygon network is thriving

Polygon (MATIC) dipped far from its peak of $2.88 and its users believed that it would remain under $1 during its transition to its 2.0 version ($Pol). However, that can change in the latest development as over a million new users join the network. What could this mean for the Polygon? Here are the details of current events:

Polygon surge of new users spikes the network’s activities

Polygon is now undergoing a surprisingly strong surge in both the market and network. Trends began in April 2024 which until then was just recovering from its 2023 dip. Now, over 1,000,000 active addresses operate on Polygon on average, surpassing many layer 2 networks, scaling with its rival, Ethereum (ETH). This is a huge leap from Polygon’s average fluctuation between 300,000 and 400,000 daily users until the 3rd of April 2024. 

This trend happens while MATIC is still in the red, having only dropped by 12% within the last week of March 2024. That means people are joining its space for the features the network offers, not the token. Even then, this new win means the crypto is also likely to surge upwards in the immediate future. 

Polygon indeed has a strong potential as a layer 1 network rivalling Ethereum in Web3.0 development. However, it still has significantly less support and MATIC has fewer use cases compared to its contemporary. The only Polygon casino at the moment online accepts MATIC but no other layer 2 network tokens, unlike Ethereum which has support for many of its crypto. 

What does this mean for Polygon as a network?

• More liquidity for Polygon assets – More users means having more people to trade MATIC and perform other transactions on Polygon. This raises the number of participants in its ecosystem which also means that there are more potential buyers and sellers of every asset. 

• Expansion of the ecosystem – Having more users means that the network gains more participants with different needs and priorities. Striving to meet niche demands means that there will be developers exploring new avenues that Polygon can enable. This is the first step towards expanding the network beyond its current state. 

• Potential for a MATIC bull market – Having more users trading Polygon assets means that the need for MATIC is going to rise. Therefore, the laws of supply and demand state that orders for the asset will also proliferate. 

MATIC is still in the red but it’s recovered from 2023 losses

MATIC prices were at $1.45 in February 2023 and they dipped significantly to $0.5 in October of the same year. Then, it recovered back to averaging at $1.00 in March 2024 where it presumably hit a floor at $0.80 on April 3rd. It’s a recovery of its 2023 losses but it’s still not impressive as volatile crypto goes. However, the surge indicates an upcoming bull market. 

Will this new trend make $Pol reach a new price ceiling beyond MATIC’s $2.92 all-time high on 27th December 2021? It is a possibility before the end of 2025 but it’s not yet concrete. That is still a 68.74% loss from then to April 2024’s $0.90 current selling price. However, it is possible to recover all its 2023 losses and even reach profit for users today. 

What caused this sudden interest in Polygon?

The main reason attributed to Polyon’s sudden popularity is a shortcoming on Ethereum’s side. Users need the latter network’s layer 2 solutions for many operations but it is currently plagued with issues on gas fees and scaling, adding fees too big for users. Polygon innovated its infrastructure in response to this by introducing AggLayer in its 2.0 update. 

The AggLayer replaces Polygon’s monolithic blockchain to provide users with a more modular solution for $Pol. It offers unified liquidity for solving complex multi-chain smart contracts that are also compatible with Ethereum. Therefore, investors and Web3.0 developers saw more potential in this new innovative infrastructure that brought attention to it, reinvigorating its economy. 

Polygon has room to grow with its now thriving market

The new attention Polygon is getting shows great promise that it can thrive in the next few years. It brings new hope for MATIC and $Pol as cryptocurrencies for traders, investors, and businesses alike. 

There is no $Pol in the only Polygon casino at the moment but there is a lot for MATIC like Bitcasino. This new popularity for the network can change that as businesses aim to cater towards the thriving market. Therefore, expect more support for Polygon 2.0 and its assets in the future, ready to join its millions of daily active addresses.