Over the previous couple of months we’ve got seen Polygon’s fast progress past the scope of an Etthereum layer 2. Polygon has been targeted on changing into a key participant within the Web3 house and its newest replace reveals simply how large of a job it’d play sooner or later.
Right here’s how #Polygon is on the coronary heart of European information economic system 👇 pic.twitter.com/7vcZnHUSOW
— Polygon – MATIC 💜 (@0xPolygon) November 7, 2022
Learn Polygon’s [MATIC] worth prediction 2023-2024
In accordance with the replace, Polygon is already enjoying a pivotal position within the growth of Gaia-x. The latter is Europe’s decentralized information infrastructure for the long run. Gaia-X connects to blochain networks from completely different industries by an strategy just like that of Polygon Supernets. As well as, the information infrastructure will leverage Polygon ID to confirm credentials.
Why is that this vital for Polygon?
Polygon’s position in Gaia-X’s growth places it into the cross-hairs of mass adoption within the European area. The community managed to take care of a wholesome growth exercise particularly within the final 4 weeks. Its involvement within the Gaia-X venture was seemingly one of many components contributing to its strong growth exercise.
However can this growth exercise translate into wholesome community progress? Polygon’s community progress metric did reveal an total constructive community progress trajectory. Nonetheless, Polygon’s community progress did drop off considerably within the first week of November.
Polygon’s involvement within the Gaia-X venture nevertheless anticipated to play out positively within the long-term. Particularly for the worth of its native token MATIC.
MATIC worth evaluation
Whereas Polygon’s involvement with Gaia-X could be accretive to MATIC’s long-term outlook, it might not do sufficient for the token within the short-term. The announcement might not have been sufficient to set off some bullish momentum between 7 and eight November. MATIC crashed by as a lot as 15% on 8 November to the day’s low at $1.06 but it surely managed to recuperate barely to its $1.12 on the time of writing.
MATIC’s drawdown wasn’t stunning as a result of it skilled a robust rally final week. Nonetheless, it resulted in a push into overbought territory. However ought to MATIC merchants anticipate extra draw back or will it regain its bullish trajectory?
Polygon’s 24-hour energetic addresses registered a peak on 4 October, earlier than dropping off. This confirmed the top of the bullish demand we noticed within the earlier week.
We additionally noticed a surge in every day energetic addresses within the final two days, throughout which promote stress noticed a rise. It may thus be seen that the surge in 24-hour energetic addresses within the final two days represented bearish stress. Apparently, this bullish stress tapered off on the time of writing. This may occasionally point out that MATIC’s promote stress was restricted and may not have sufficient puff to get rid of extra of the current features.
Whereas the selloff seemed to be decreasing, it didn’t essentially imply that the bears are achieved. We would see a return of bearish demand if market sentiment favors the bears, or a return of bullish demand.