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Polygonās native token, MATIC, might be on the verge of a comeback, according to recent insights from blockchain analysts. On August 28, the analytics platform Santiment reported a significant increase in on-chain activity for Polygon, indicating a potential shift in market sentiment for the token.
Santimentās data notes a sharp rise in dormant token movements this week, alongside the second-highest number of active Polygon addresses this year. These metrics suggest that MATIC could be poised for a reversal, sparking optimism among investors who have been closely monitoring the tokenās performance.
A Noteworthy Spike
This sudden spike in activity is particularly noteworthy as it contrasts with a broader downtrend observed in the past months. According to data from Polygonscan, the number of active addresses on the network saw a sharp decline, dropping from 1.6 million in late July to just 70,000 by the end of Augustāa staggering 50% decrease.
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Daily transactions also followed a downward trajectory, falling from over 5 million in March to around 3 million by late August.
MATIC Price Drop
Despite the recent surge in on-chain activity, MATICās price remains subdued, reflecting the broader bearish sentiment in the crypto market. After reaching a two-month high of approximately $0.58 on August 25, MATIC quickly lost momentum, dropping 24% to a ten-day low of $0.437 on August 29. The token is still down 85% from its all-time high of $2.92, recorded in December 2021.
Other Developments
Meanwhile, Binance announced on August 28 that it would support the upcoming network token migration from MATIC to POL, scheduled for September 4. This migration is part of Polygonās broader strategy to enhance its ecosystem and potentially drive further adoption.
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However, the Polygon community faced a setback on August 24 when its Discord channel was compromised in a widespread attack targeting the servers of several blockchain projects.
As the crypto community watches closely, the upcoming token migration and continued on-chain activity will be crucial in determining whether MATIC can break free from its current bearish trend and chart a new course toward recovery. While the signs of a resurgence are promising, the token still has a long way to go before it can regain the confidence of the market.
