On-chain data suggests that Polygon adoption has been accelerating as MATIC has enjoyed an increase of 10% during the past day.
Polygon Network Growth Has Been Steadily Rising Recently
According to data from the on-chain analytics firm Santiment, MATIC addresses are being created at an increasingly faster rate. The relevant indicator here is the “network growth,” which measures the total amount of new Polygon addresses that are coming online on the blockchain.
New addresses may be considered analogous to new users coming into the network, so this metric can provide us with hints about how the adoption of the cryptocurrency is coming along.
When the value of the indicator is high, it means that a large number of new addresses are being created on the network right now. Naturally, this kind of trend would suggest that a large number of new users are potentially joining the chain currently.
On the other hand, low values imply new MATIC address activation is low on the network at the moment, a likely sign that the asset isn’t seeing too much adoption.
Now, here is a chart that shows the trend in the Polygon network growth over the past month:
The value of the metric seems to have been going up in recent weeks | Source: Santiment on Twitter
As highlighted in the above graph, the Polygon network growth had hit a relatively low value back in the middle of June, but since then, the indicator has been riding an overall uptrend.
From the chart, it’s also visible that the sharpest spikes in the metric had come at points where the cryptocurrency’s price had been experiencing significant volatility.
Generally, sharp price action can catch the general investors’ attention, as they usually find such moves “exciting.” So, it’s not unexpected that the network growth would surge during such periods, as new traders would be pulled towards the coin.
While the spikes due to these volatile price moves have only been temporary fluctuations, the average value of the Polygon network growth has still been steadily going up recently. This could be an optimistic sign for MATIC, as it suggests that the asset is not only getting in a stream of new users, but the rate at which they are joining the chain has actually been slowly accelerating.
Historically, such adoption has proven to be constructive for the cryptocurrency’s price, although the visible effects from it may only appear in longer time periods.
During the past month (the period in which this uptrend in the network growth has taken place), MATIC has gone up by around 21%, with the asset seeing a 10% increase in the past day alone. Naturally, this new rally being backed up by more adoption can be positive for its sustainability, although it’s certainly not the end-all-be-all on the matter.
MATIC Price
At the time of writing, Polygon is trading around $0.73, up 5% in the last week.
MATIC looks to have rapidly risen during the past day | Source: MATICUSD on TradingView