polygon

Polygon (MATIC) Staking Plunges 35% In A Week – Is Confidence Fading?

Polygon’s MATIC token has been facing a turbulent period. Its market capitalization has significantly dwindled over the past few months, a trend echoed in the staking ecosystem. The once-growing pool of staked MATIC has contracted by a staggering 35% in just a week, sparking concerns about investor confidence.

Data from Staking Rewards corroborates this downward trend. While the number of staked MATIC steadily climbed until July 3rd, it has since experienced a consistent decline. This parallel drop in both staking participation and token price raises questions about investor sentiment.

CoinMarketCap data reveals a more than 27% price slump for MATIC, further emphasizing the bearish market conditions. With only 2% of investors currently in profit, according to IntoTheBlock, the situation appears grim.

A deeper dive into on-chain metrics provides a nuanced perspective. While the overall sentiment surrounding MATIC remains negative, as indicated by the weighted sentiment metric, there are countervailing indicators. The slight decrease in MATIC supply on exchanges and the corresponding increase in supply outside exchanges suggest that some investors are accumulating the token. Furthermore, the marginal increase in supply held by top addresses hints at potential whale accumulation, a bullish sign for some market participants.

Also Read: Polygon (MATIC) Plummets 98% – Can It Recover To Top 20?

Technical analysis offers additional insights. The bullish crossover in the MACD indicator and the upward trajectory of the Chaikin Money Flow (CMF) towards the neutral zone suggest a potential for bullish momentum in the near future.

However, the declining staking participation and overall price weakness cannot be ignored. These factors underscore the challenges faced by Polygon and the broader cryptocurrency market. As the situation evolves, investors will be closely monitoring these developments to gauge the long-term prospects of MATIC.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

About The Author

Ripple (XRP) Previous post XRP On Fire – Analyst Predicts $100 Price Target, Outpacing ETH And BTC
Next post Bitcoin Ownership In The Gulf Increased By 30% In The past year.
Dark