Polygon Network ecosystem continues to experience amazing growth. About 13.87% of the total supply was just yesterday released to the foundation contract address from the Polygon contract address.
The native token underwent substantial movements after the important development.
Santiment recorded a huge awakening of MATIC addresses post the network token unlock. A sizeable number of inactive tokens changed addresses as the Token Age Consumed metric reached a record-breaking level of 1.66 trillion.
These surges are known to signify the direction of the price trend.
However, Polygon’s mean dollar age dropped, highlighting the fact that older, inactive addresses moved a large amount of coins.
Token Age Consumed metric records the number of tokens changing addresses on a given date, multiplied by the number of days since their last migration.
While undoubtedly a helpful indicator for determining the direction of price changes, it alone cannot provide complete clarity.
A better indication of whether to go long or short could be obtained by looking at a few other variables.
The MVRV ratio improved and had a favourable effect on the coin’s market value.
This suggest a growing interest in the asset. It also shows that the token is still in the accumulation phase.
The Ethereum whale (bonobo), according to whale monitor WhaleStats, has recently spent more than £11.5 million.
It bought £0.90 million worth of the main token at first, and then added another £1.56 million worth, for a total of more than 2.1 million tokens.
Overall, all of the above clues pointed to a rapid short-term price movement.
While the mood largely favours the north side, the projected upside needs backing from a solid Q2 performance.
In comparison to its ATH of almost £4.9 billion, MATIC’s TVL of £1.5 billion is considerably low.
Nevertheless, it is impossible to completely rule out the possibility of a downturn. Therefore, traders and investors should exercise caution.