Polygon DApp Volume Surpasses $100M: Will This Help MATIC Price?

Polygon’s dApp Polymarkets traded over $100 million in terms of volume and also saw a surge in activity.
MATIC price and network growth declined.

Polygon [MATIC] The ecosystem has seen a lot of activity on its network. One reason for Polygon’s success would be the popularity of its dApps.

Expectations in Polymarkets

Polymarket, an event-based betting dApp, has traded over $100 million in terms of volume with a significant increase in activity.

More users being attracted by popular dApps like Polymarket means there will be more users on the Polygon network as a whole.

Success stories like Polymarket attract more developers to build dApps on Polygon. This can lead to a wider range of applications being built on the platform, further enriching the Polygon ecosystem.

Growing adoption and network activity could have a positive impact on the price of Polygon’s native token MATIC. As more users interact with dApps, the demand for MATIC for gas fees and other functionalities could increase.

Source: X

How is MATIC doing?

At the time of writing, MATIC was trading at $0.5524 and its price had dropped by 1.08% over the last 24 hours. Since June 7, the price of MATIC has fallen drastically.

During this period, the MATIC price displayed several lower lows and lower highs, indicating a bearish trend.

The RSI (Relative Strength Index) for MATIC also decreased during this period, which suggests that the bullish momentum around MATIC has diminished.

Along with this, the total trading volume of MATIC had also decreased by 30% compared to the previous month.

However, there has been a significant increase in the CMF (Chaikin Money Flow) for MATIC, meaning that there has been a significant increase in money coming into MATIC over the last few days.

If the currency inflows continue to increase, the chances of a reversal increase. If MATIC manages to test the $0.5961 level and weaken it, the price may aim to retest $0.7413 in the future.

Source: Tradingview

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Speaking of on-chain metrics, AMBcrypto’s analysis of Santiment’s data showed that network growth has declined significantly over the past few days, meaning that new addresses are losing interest.

If this trend continues, the potential for MATIC’s price reversal could be severely impacted.