Polygon (MATIC) Active Addresses & Age Consumed Have Spiked Recently: What This Means for the Price

On-chain data shows that some activity metrics related to Polygon have surged recently, which could be positive for the asset's price.

On-chain data shows that some activity metrics related to Polygon (MATIC) have surged recently, which could be positive for the asset’s price.

On-chain analytics firm Santiment discussed the latest trend in two MATIC indicators in a new post on X. The first is the “Daily Active Addresses,” which tracks the total number of addresses participating in some kind of transaction activity on the network every day.

The unique number of active addresses can be considered the same as the unique number of users participating in network activities. Thus, the value of this metric tells us about the amount of traffic that the blockchain is observing at the moment.

When the indicator’s value rises, it means that more users are becoming active on the network. Such a trend could imply that cryptocurrency is attractive to investors.

On the other hand, the metric registering a decline suggests that investor interest in the asset could be declining as fewer users make transfers on the blockchain.

Here is a chart that shows the trend in the Daily Active Addresses for Polygon over the past few months:

As you can see from the chart, the Polygon Daily Active Addresses have surged recently. At the peak of the latest spike, 3,369 MATIC addresses made transactions on the network, which is the second-highest value for the year.

The activity seems to have picked up just after MATIC’s latest price decline, which could be hinting at investors rushing to buy the dip. If this is the case, then the coin may benefit from a turnaround in the activity.

The second indicator in the chart is the “Age Consumed,” which tells us whether dormant coins are on the move. From the chart, it’s visible that a large number of old tokens appear to have moved on the network during the latest activity rush.

This can be a mixed signal, as it could suggest that the asset’s diamond hands are selling. It’s also possible that these investors have only shifted the coins for some other activity, as the last Age Consumed spike of a similar scale proved bullish for Polygon.

Given the spikes these on-chain indicators have witnessed, how the coin develops from here remains to be seen.

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