- Less than 45% of holders made profits.
- MATIC price may rise to $1.30 as the Napoli update approaches.
IntoTheBlock data shows that Polygon (MATIC) has erased a large portion of its recent gains, leaving holders with nothing but pain. According to the cryptoanalysis platform, 50% of MATIC holders were lost.
On the other hand, 44% made profits while the remaining 6% reached break-even. This data comes as a surprise when looking at the performance of the token at any given time.
AMBCrypto reported a few weeks ago
How Polygon Token Surged and Showed the Potential to Reach $2. However, the last few days have not been good for the cryptocurrency.
At the time of writing, CoinMarketCap revealed that the price of MATIC has decreased by 4.44% over the past seven days. Notably, MATIC was valued at $0.99, indicating that bulls found it difficult to revisit the psychological resistance of $1.
However, this decline does not mean that MATIC is out of the race for tokens that will perform well this season. But the recovery could be significant for short-term holders.
Polygon wants MATIC to cook
So does Polygon have any significant updates that could spike the “buy rumor”? Well, AMBCrypto discovered that there might be one.
On March 27, the project revealed that a new fix called the “Napoli Update” was in the works. According to the blog post, the update will help Polygon achieve network consensus.
He said this will be done by integrating improvements into parallel execution and new operating code for the Ethereum Virtual Machine (EVM).
As a result of the Napoli upgrade, Mumbai, which is the testnet of the proof-of-stake (PoS) network, will be phased out in April. In turn, Amoy Test Network will take its place.
Like the previous update, this next development could be bullish for MATIC. If buying pressure increases in the future, MATIC price may rise to $1.30.
some difficulties arise
Despite the potential for a reversal in MATIC, Polygon still faces some challenges. One of them was with its Total Value Locked (TVL).
In 2021, Polygon’s TVL performed incredibly as it reached $10 billion. But at press time DeFiLlama data showed the metric was only at $1.07 billion.
TVL measures the value of assets locked or staked in a protocol. If it increases, it means that market participants have added liquidity to the protocol, helping to improve its health.
Realistic or not, here is the MATIC market cap in terms of ETH
The opposite happens when the metric decreases. Over the last 30 days, deposits in Polygon Protocol have increased by 3.66%. However, the increase was small compared to other chains.
But this metric does not always affect the price. Thus, the value of MATIC can increase regardless of the health state of the network.
This is an automatic translation of our English version.