Polygon (MATIC) Market Volatility Raises Concerns as Profitable Addresses Drop to 5.63%

Amidst crypto market volatility, Polygon (MATIC) has raised concerns due to alarming data about the profitability of its addresses on the network.

Amidst the ongoing volatility in the crypto market, concerning data has emerged regarding the profitability of addresses on the Polygon (MATIC) network. According to a recent report by IntoTheBlock (ITB), only a small 5.63% of MATIC addresses are either in profit or at the breakeven point. This starkly contrasts with the profitability observed in other cryptocurrencies, such as Bitcoin, where the percentage of profitable addresses is significantly higher, reaching 86.81%.

As an Ethereum-based layer 2 scaling solution, Polygon has been encountering a challenging period despite its technological innovations. While platforms like Flipkart and OKX are adopting Polygon CDK and zkEVM, MATIC experienced a 3.9% drop in the last 24 hours and is currently trading at $0.5535. The bearish trend has been evident over the past month, leading to a 23.5% decrease and impacting the profitability of addresses associated with the Polygon ecosystem.

The ITB data highlights a concerning situation for users and developers within the Polygon network, who are facing substantial financial losses on their investments. Despite efforts to maintain a leadership position in Web3.0, the widespread negative profitability raises questions about the long-term sustainability of investments on the platform.

The downward trend in address profitability on Polygon is not an isolated phenomenon. Other Ethereum layer 2 protocols, such as Arbitrum, have also reported a high proportion of addresses in loss, exceeding 97%. This pattern indicates a clear disconnect compared to the profitability observed in Bitcoin and other cryptocurrencies, presenting a tough challenge for projects focused on Ethereum scalability.

As Polygon continues to innovate and expand its technology to empower decentralized applications and the digital economy, the current reality of its profitability poses challenges. Investors and developers will need to closely monitor their capital and adjust their strategies accordingly.

News source：https://www.kdj.com/cryptocurrencies-news/articles/polygon-matic-market-volatility-raises-concerns-profitable-addresses-drop.html

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