Polygon’s Decentralization Plan Draws in Almost 500k Daily Active Users

It is usually uncommon for any network to sustain as many investors as Polygon did within a day especially when the market is not in the asset’s favor. While MATIC has lost over 11.61% in the last 48 hours, investors continue to swarm in owing to Polygon’s developments.

Polygon’s Expeditious Growth

Although MATIC has been bearing the brunt of the bearish market, for most parts the altcoin performed exceptionally in the last 2 months.

While the overall market was on a downfall, Polygon’s token witnessed a 61.1% rise initially which marked a new all-time high for the coin. And this was followed by a 31% fall (ref. MATIC Price Fluctuation image below). 

Soon after MATIC recovered but was met with the 3 big red candles of the last 3 days where it ended up falling by more than 12%.

However, investors were quick to jump in to buy the dip of January 8 and this resulted in the network experiencing the all-time highest number of active users in a day of 492.1k.

But beyond just the price action, the network’s ever-expanding adoption also deserves credit for this bullishness observed from the investors.

The most recent example of this augmenting adoption is Bitfinex’s activation of Polygon deposits on the exchange.

Additionally last month, Uniswap was launched on the network as well, and just 2 days ago EIP-1559 went live on Polygon to help make MATIC deflationary. Thus the developments on the network are propelling investors’ bullishness towards Polygon. 

Furthermore, the network is also looking into strengthening its decentralization using various methods. The first of which is Polygon DAO.

According to the Polygon Team in order to best initiate a more established and empowered governance community creating a DAO is important as it helps Polygon users to make decisions on the future of Polygon.

But since the network is still in the initial stages of creating a truly decentralized network, they assured investors of transparency as they reveal further details on their plans as well as a governance transparency application, details of which too would be discussed later.

Will MATIC Have Any Impact?

The price action for the altcoin has not been affected as severely currently. As discussed above the momentum is still favoring the broader market cues. But as the Parabolic SAR displays a rising uptrend, price too could enter recovery soon.