Polygon (MATIC): Why Shorting Enthusiasts Should Reconsider Their Decisions

Polygon recorded an increase in daily active address count, regardless of its deteriorating prices. That could be because of Polygon’s latest partnership with Nubank, Brazil’s leading financial institution. However, the question lingers, can it be a stable growth-associated collaboration?

Santiment’s data indicated an impressive growth in Polygon daily users within the previous 30 days. Polygon had 136,000 daily users as of September 20. Nevertheless, the figure hovered at 326,000 during this publication. That might show lucrative interest from Polygon users. Therefore, it could indicate an optimistic near-term future for MATIC.

Polygon’s Surging Interest

The sudden interest increase in Polygon might have emerged from the soaring collaborations. The Nubank collaboration will have Polygon supporting Nubank in launching its chain and digital coin, Nucoin. That would open the path for over 70 million Nubank clients to the Web3 market and possibly attract them to the Polygon blockchain.

Nevertheless, Polygon’s decentralized finance (DeFi) didn’t showcase lucrative growth, regardless of the increased collaborations and active users. DeFi Llama data shows the crypto’s total TVL plummeted within the previous few weeks.

Besides the plunging total value locked, Polygon noted a sharp dip in its growth metric. That might indicate faded interest in new wallets. Nevertheless, the previous few weeks noted surging Polygon volume, standing at 459 million during this publication.

Also, the MVRV Ratio was bullish at this writing, giving investors hope. Polygon recorded an increase in exchange outflow. That hinted at investor high accumulation interest, representing a bullish signal.

MATIC Price

Meanwhile, MATIC’s price failed to capitalize on the latest bullish developments. While publishing this news, Polygon traded at $0.84, following a 3.29% decline within the past day. Also, its market capitalization plunged by 3.10% in that timeframe.

Nevertheless, its volume climbed by 0.5%. The broad crypto market saw bearish actions within the past day. For instance, the cumulative market value of all digital assets dipped by 1.43% over the past day to $908.10 billion. Bitcoin remains beneath the sought-after $20K.

While writing this content, the world’s largest crypto changed hands at $19,004.51. Only improved broad market cues will rescue MATIC from its downsides.

You can share this content.