Polygon: Can the upcoming SAGA airdrop benefit MATIC

• MATIC faces price correction, but the SAGA airdrop sparks interest.
• Despite network growth hurdles, Polygon’s ecosystem shows resilience with increased active addresses.

Polygon [MATIC], recently weathered a downward price trend, but a silver lining emerged with the potential for renewed interest fueled by recent events.

Airdrop SZN

The spotlight shines on the SAGA airdrop, captivating over 26,000 Polygon users who engaged through MATIC staking or leveraged Polygon’s zkEVM Bridge for Ethereum transactions.

This strategic maneuver aims to infuse interest into the MATIC ecosystem by enticing a fresh influx of addresses.

NEW:

The $SAGA (@Sagaxyz__) airdrop is available to 26K+ Polygon users who staked $MATIC or bridged $ETH using the zkEVM Bridge. pic.twitter.com/Kc1Y3cNdRR

— Today In Polygon (@TodayInPolygon) January 4, 2024

Sandeep Nailwal, co-founder of Polygon, took to Twitter expressing enthusiasm about Saga’s role in their ecosystem.

Commending Saga’s contributions, especially in automating decentralization infrastructure for Appchains, Nailwal hinted at the potential for decentralized sequencing capabilities within Polygon CDK.

Thanks @Sagaxyz__ for including @0xPolygon community in the airdrop.

Super thrilled to have Saga as a key contributor into the Polygon ecosystem. They have been involved throughout the Supernets to CDK chains journey! They are doing amazing work, specially in automating… https://t.co/QkB3NGCM2U

— Sandeep Nailwal | sandeep. polygon 💜 (@sandeepnailwal) January 4, 2024

Looking at the price movement

Despite these promising moves, trader interest in MATIC witnessed a slowdown, evident from the dwindling short positions.

At press time, the percentage of short positions taken against MATIC was 53%. This apparent discrepancy raised questions about the immediate impact of these positive developments on the broader sentiment around MATIC.

Delving into MATIC’s price trajectory, a recent correction did not derail the overarching bullish trend marked by higher highs and higher lows over the past month.

However, MATIC faced a marginal 0.44% decline in the last 24 hours, settling at $0.856.

In stark contrast to MATIC’s price dynamics, network growth faced a hurdle, signaling a diminished interest from new addresses. Should this trend persist, MATIC’s potential for sustained growth could be compromised.

Source: Santiment

While MATIC grapples with these short-term challenges, the broader Polygon network demonstrated resilience.

Despite the decline in new addresses, active addresses on the Polygon network surged by 31.2% over the last month. However, a 4.1% reduction in revenue generated on Polygon poses a potential headwind.

Source: Token Terminal

How much are 1,10,100 MATICs worth today?

In essence, the diverging trajectories between MATIC’s token dynamics and the broader Polygon network paint a nuanced scenario. MATIC’s struggle to attract new addresses and the diminishing trading volume present immediate hurdles.

Conversely, the sustained growth in active addresses on the Polygon network hints at underlying strength, despite the revenue dip.