MATIC bulls dropped the bag after a market panic that turned a correction phase into a dive. latest market data shows MATIC has been battered, losing 33% of its value since last week. Hostile market environment and macroeconomic concerns continue to plague the wider financial world.
The cryptocurrency market has not been spared. The entire market depreciated by almost 17% in the last 24 hours, which indicates a period of robust bearish pressure. Despite the overwhelming downward trajectory the market has adopted, there are ongoing events on the chain that could sluggish the bear wave, but it will take some time for the price to return to realistic levels.
More events
Polygon’s position continues to grow as it marks several events that improve the user experience on the platform. Messari, an independent crypto research platform, recently released in a report that provides an overview of the Polygon ecosystem.
In summary, the report notes several changes to the platform that took place in the second quarter of the year. First of all, the community reached a consensus on improvements that will positively impact the usability and performance of the network. One of them will be the transition from MATIC to POL, which is planned is to take place on September 4.
To attract developers to Polygon, the platform created a $1 billion Community Grants Program (CGP) to financially support Polygon developers and creators. According to a June blog postThe first season of CGP will feature a MATIC pool worth $35 million, equivalent to approximately $12.9 million at today’s prices.
Uniswap also launched the Uniswap v3 campaign on Polygon with an additional $250k in rewards on Oku, a crypto trading platform. This will boost investor confidence in the platform as it shows that despite hostile market conditions, Polygon remains a major player in the DeFi space.
This is evident in the current metrics the platform is running on. Nansen’s data shows an raise in the number of dynamic addresses and transactions over the last 24 hours, which would be a great indicator of increased activity if it weren’t for the despondent atmosphere surrounding the market.
DefiLlamaon the other hand, it shows the other side of the coin, showing vast outflows in all chains of the Polygon ecosystem.
MATIC: Will investors face bigger challenges?
As the market continues to suffer a painful decline, investors are ready to divest their holdings in MATIC. Last Market data shows investors are rushing to stock markets to sell rather than holding onto assets and riding the downtrend.
This can be seen in the price of MATIC which is still testing the $0.339 support level.
Market overreaction due to cascading concerns across the broader financial spectrum continues to threaten any future bullish action. Right now, MATIC has fallen to March 2021 levels, a novel low after an early 2024 rally led by major cryptocurrencies like Bitcoin and Ethereum.
Investors and traders should evaluate their positions to stay in the green. If possible, they can try to take advantage of the situation by selling the token low.
Featured image from Pexels, chart from TradingView
