Polygon (MATIC) shows mixed trends in on-chain data, especially when it comes to the profitability of its addresses. According According to data from cryptanalysis platform IntoTheBlock (ITB), only 5.63% of Polygon addresses are in profit or break even or in the money.
Polygon (MATIC) shows mixed trends in on-chain data, especially when it comes to the profitability of its addresses. According According to data from cryptanalysis platform IntoTheBlock (ITB), only 5.63% of Polygon addresses are in profit or break even or in the money.
Misaligned Polygon Fundamentals and Price Trends
Polygon is a unique layer 2 scaling solution based on Ethereum. However, its uniqueness has not translated into a price increase in recent times.
Arman ShirinyanITB data shows that no address is completely profitable on the Polygon network. The data also revealed that 3,651 are “in the money” at the time of this publication. At the moment, a total of 612,58,000 addresses, or 94.37%, are “out of money” or in losses.
This is a very worrying trend considering the widespread adoption of Polygon-centric technologies. One of them, Polygon CDK, is powering different new chains as the L2 pivots, extending its service to developers looking to build related or alternative chains.
So far, Polygon CDK is being used by Flipkart, OKX and many other innovators looking to make a difference in Web3.0. In addition to CDK, Polygon zkEVM is another technology that showcases Polygon’s advanced capabilities.
However, amid its innovations, MATIC continues to decline by up to 4.9% in 24 hours, to $0.5516. Over the past month, the token has fallen further by 24.34%, accelerating the decline in the profitability of the direction of its associated ecosystem.
L2 common tendency
With most altcoins mimicking Bitcoin when it comes to key on-chain metrics, Ethereum’s layer 2 ecosystem appears to have decoupled from this trend overall.
Godfrey BenjaminWhile Polygon is seeing intense address losses, the profitability of Bitcoin addresses is pegged at 86.81%, despite recent liquidations.
One consolation for Polygon is that other major L2 protocols, such as Arbitrum (ARB), are also seeing a similar address attack. According to ITB data, more than 97% of addresses are in losses, despite a great ecosystem and product adoption.
