Polygon Token (MATIC)
Polygon (MATIC) has experienced a surge in user growth, surpassing Bitcoin (BTC) in 2023, according to a report by Flipside Analytics. This achievement could have a significant impact on the price of MATIC in 2024.
While other altcoins like Solana (SOL), Cardano (ADA), and Avalanche (AVAX) saw triple-digit gains in Q4 2023, MATIC’s price performance has been lackluster. However, Flipside Analytics’ report indicates that there are fundamental growth signals that could positively affect MATIC’s price action in 2024.
Polygon attracted 15.2 million new user addresses in 2023, placing it behind Ethereum in terms of user acquisition. This number is 50% higher than Bitcoin’s acquired user count for the same year. Other projects like Arbitrum (ARB), Optimism (OP), and Base also made the top 8 list, highlighting the rapid growth of Layer-2 scaling projects in the crypto sector.
The increase in new user count suggests that Polygon is attracting new participants at a faster rate than Bitcoin and its Layer-2 competitors. This could lead to increased market demand for the MATIC token as these new users engage with the network.
Furthermore, data shows that Polygon is receiving a significant number of transactions from new users. Around 37% of MATIC’s daily transactions in the past month were from new wallets transacting for the first time. This indicates that a substantial portion of the 15.2 million new addresses recorded in 2023 are actively participating in the network.
Looking ahead to 2024, the transition from the MATIC to the more decentralized POL token and the partnership with Chainlink could further enhance Polygon’s adoption. These developments position the network to capitalize on the growth of Real World Assets (RWA) and tokenization trends.
In summary, Polygon’s user growth surpassing Bitcoin and its Layer-2 competitors, coupled with the increasing number of new-user transactions, are key factors that could drive MATIC’s price upward. Additionally, the token upgrade and strategic partnerships could fuel further growth and positive price action for Polygon in the coming months.
While MATIC looks poised for positive price movement in 2024, it currently faces resistance at the $0.80 level in the short term. Breaking above this level could open the door for a retest of the $1 area.
