What Polygon’s [MATIC] resilience to the last market turmoil suggests, as per…
In 2022, the cryptocurrency market experienced an insane amount of volatility. But one asset that held its own during the series of capitulations was Polygon [MATIC] . Crypto investor and analyst Dan Lim comprehensively looked at the token’s condition in his CryptoQuant publication.
Read Polygon’s [MATIC] Price Prediction 2023-2024
According to him, MATIC’s remarkable resilience was due to its increased velocity . In crypto, the velocity of an asset refers to the total amount of coins moved over the past year divided by the total supply. This metric serves as an indicator of the coins circulating within the crypto economy.
Source: CryptoQuant
At press time, the metric was still at an increasing rate. This showed that MATIC tokens were circulating fast.
Dan Lim also pointed to the Polygon trading volume as one reason MATIC’s value has remained relatively stable. The analyst noted that before June 2022, the volume hardly increased. However, after the period, it exempted itself from the trend and turned upward.
Interestingly, this was enough to back MATIC’s resistance to close in on a new low even when Bitcoin [BTC ] dropped to $18,600.
Source: CryptoQuant
This year, MATIC’s performance has summed up to a 36.59% hike and remained far above the $0.34 low. On looking at the 365-day dormant circulation, Santiment showed that there were a series of spikes.
The metric showed the number of unique tokens that have existed for a long period. Hikes in this regard meant that the token moved or was transacted. The data showed inconsistencies in the metric, as there were times when the circulation increased. Moreover, there were seasons when it was flat.
Source: Santiment
This implies that some holders dumped some of their
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