Polygon Transaction Volume Spikes, Will MATIC Price Follow?

The number of transactions on the Polygon network has been climbing recently. Furthermore, MATIC prices have been outperforming markets. Will they climb further?

According to on-chain analytics provider IntoTheBlock, Polygon transaction volume is ticking up again. According to the firm, total transaction volume hit $260 million on Dec. 12. Furthermore, this is an increase of 900% from the $26 million recorded on the previous day.

The volume spike has eclipsed the seven-day average of $170 million per day. However, transaction volumes spiked to a monthly high on Dec. 7 when they reached $511 million, according to IntoTheBlock.

The uptick could be a precursor to a larger price movement for the network’s MATIC token. These volume spikes have become more frequent in recent weeks following several months of very low volatility for the asset.

Polygon Network Holding Steady

The total number of transactions on the Polygon network on Dec. 12 was 4,220, up from the previous day’s 3,000 or so transactions. The total volume for the day was 292 million MATIC tokens. Transaction volumes have ticked up from a lull period in late September and early October.

Polygon active addresses have also jumped 31% on Dec. 12, according to Glassnode. This is in line with the volume uptick. However, active addresses on the network have been down trending since mid-November, when they hit a three-month high of 9,159.

Total addresses on the network are currently at an all-time high of 1.6 million, reported Glassnode. Furthermore, they have increased by 64% since the beginning of the year. This is largely due to greater layer 2 adoption over the year.

DeFi on Polygon has taken a bit of a hit this year. The total value locked on the network is currently around $1.14 billion, according to DeFiLlama. This represents a decline of 81% since the beginning of the year but reflects a similar situation for the entire DeFi ecosystem.

MATIC Price Outlook

MATIC has weathered the crypto bear market slightly better than its brethren. The top ten ranked crypto asset has a market capitalization of $8 billion.

MATIC prices have gained 1.7% on the day to reach $0.901 at the time of press, according to CoinGecko. Additionally, the asset has gained 9.5% over the past fortnight and has been rallying while others are range bound.

MATIC has fallen 69% from its all-time high, made this time last year at $2.92. However, the drop is not as deep as many other altcoins, which have seen losses greater than 85%.