The Number of Active Users on the Polygon Network is Increasing! MATIC Price Analysis

The cryptocurrency market started early Friday with corrections and minor pullbacks in prices.

The cryptocurrency market started early Friday with corrections and minor pullbacks in prices. However, this did not apply to MATIC. MATIC, which has risen over 9% in the last 24 hours, surpassed Solana to become one of the top 10 crypto assets.

Polygon Active Users Increase

The Polygon network, a layer-2 scaling solution for Ethereum, has grown stronger this year. According to Token Terminal data, the number of daily active users on the Polygon network has outstripped the Ethereum network. According to the table, BNB Chain is in the best blockchain position with approximately 800 thousand daily active users. However, Polygon, which has 340,000 daily active users, is in the second place, while Ethereum is in the third place with 320 thousand active users. According to Polygonscan data, the increase in daily active chain addresses has approached 400,000 and the metric has risen 21% over the past two weeks.

Locked Value Is $1.28 Billion

In addition to the number of active users, the total value locked on Polygon DeFi has also increased since the beginning of the year, approaching $1.28 billion. This data also represents an increase of almost 20% since January 1st. According to Polygonscan data, 3 million transactions are processed daily on the network. On the Ethereum network, this number is 1 million. These increases in the number of active users and the total number of locked assets reveal the increasing interest in the Polygon network.

MATIC Goes Over $1

MATIC, the local crypto asset of the Polygon network, managed to attract attention with these rises in the network, and the asset rose above the price of 1 dollar. Of course, the number of daily activities experienced on the network is not the only reason for the price increase. The successful completion of the Delhi hard fork designed to reduce gas fees and reorganize the address chain on January 17, the partnership with BitGo on January 20 to provide staking capabilities to MATIC holders, and the Arkham Intelligence partnerships on January 26 are other factors that contributed to the rise in price.

MATIC Price Analysis

The upward trend and partnerships on the chain naturally led to the rise in the price of MATIC. After gaining 14% value last week, MATIC broke the psychological $1 barrier for the first time since November. The asset, which has gained an impressive 45% since the beginning of the year, is still 63% down from its December 2021 ATH level of $2.92.

If MATIC price continues to move upwards, the first resistance level appears in the $1.15 region. A rally above $1.12 and a break above the 1.15 resistance could initiate another strong upward move in price. In this case, the price of the asset can go up to the $1.20 level. MATIC, currently at $1.09, is likely to decline below 98 cents if it breaks below the 1.05 region. The next level of support for the asset is located in the 92 cent region.