As a researcher with a background in blockchain technology and cryptocurrency analysis, I find the current state of Polygon (MATIC) to be quite intriguing, yet concerning. The on-chain data trends for this Ethereum-based layer-2 scaling solution are displaying conflicting signals, particularly when it comes to the profitability of its addresses.
Based on data from crypto analysis platform IntoTheBlock, approximately 5.63% of Polygon (MATIC) address holders currently have a profitable or neutral investment status.
Misaligned Polygon fundamentals and price trends
“Polygon, which is a distinctive Ethereum-compatible layer-2 scaling platform, hasn’t experienced a significant price increase recently despite its uniqueness.”
According to ITB data, no Polygon network address currently generates a clear profit based on the current market conditions. However, there are 3,651 addresses that are breaking even at this moment. In contrast, approximately 94.37% of the total 612,580 addresses, or around 587,929 addresses, are either underperforming or incurring losses.
As a researcher studying the blockchain landscape, I find it noteworthy that Polygon-centric technologies are gaining significant traction. One such innovation, the Polygon Compute Development Kit (CDK), is being utilized to establish various new Layer 2 (L2) chains as the industry shifts focus. This expansion allows developers to build related or alternative chains using Polygon CDK’s services.
So far, Polygon’s CDK (Customized DeFi Kit) has been adopted by forward-thinking companies like Flipkart and OKX, as well as numerous other pioneers in the Web3.0 space. In addition to CDK, Polygon’s zkEVM technology is another testament to Polygon’s cutting-edge capabilities.
I’ve analyzed the market trends, and despite MATIC‘s groundbreaking advancements, its value has decreased by approximately 4.9% in the last 24 hours to reach $0.5516. Over the past month, there’s been a significant dip of around 24.34%, intensifying the downturn in profitability for addresses within its ecosystem.
Common L2 trend
As a researcher studying the cryptocurrency market, I’ve noticed that many altcoins tend to follow Bitcoin‘s lead when it comes to on-chain metrics. However, something intriguing stands out regarding Ethereum‘s layer-2 ecosystem: it seems to have diverged from this trend.
Polygon experiences heavy losses in addressed values, but Bitcoin’s addresses maintain profitability of 86.81%.)
As a researcher studying the cryptocurrency market, I’ve noticed that Polygon (MATIC) isn’t alone in experiencing a significant influx of new addresses. Similar trends have been observed with other L2 (Layer 2) protocols like Arbitrum (ARB). According to ITB data, over 97% of these addresses are currently showing losses, despite the fact that both projects boast large ecosystems and have gained widespread acceptance in the industry.
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2024-06-24 17:12