Assets covered: Polygon (MATIC)

Metrics used: Active Addresses, Network Profit Loss, Exchange Inflow, Daily Active Deposits, Network Growth, Social Volume, MVRV

MATIC has been pumping today approaching it's all time high.

How sustainable is it's rally?

Active Addresses

Onchain-wise MATIC is looking pretty decent at almost 10K addresses interacting with a coin daily:

Especially if we look at it's active addresses trend from September to December. Even the October correction in onchain activity was relatively shallow. So all good.

Network Profit Loss

We can see some profit taking every now and again:

There were a little drops in NPL, but MATIC rebounded very quickly. Probably thanks to price action. It hasn't recently dumped so strong to make people sell at a loss.

Exchange Inflow

It's definitely picking up:

And starting to move into the domain of high sell side pressure. But may be not there yet. Especially when we are looking at it at a yearly scale:

Daily Active Deposits

Looking pretty clean and high:

EI rise + DAD rise = might be a short term top occurring. Whether it's before or after we break ATH. Especially because onchain activity is looking very strong.

Network Growth

3.7K new addresses interacting with MATIC seems more than most coins get overall in a day. MATIC is looking strong once again.

Social Volume

According to Santiment social data there is some room to grow because not a lot of people paying attention to MATIC currently. Perhaps we're not going to see a wave of new interest in MATIC until we break ATH. For now, at least from social perspective, there is still room to grow.

MVRV 30d

We are about +24% at the moment of writing this:

It's somewhat high and getting close to a danger zone. If we look at crazy high May levels we can see they lasted just a couple of days and dropped. It's not super alarming at the moment, but once we break ATH, we could hit a possible MVRV resistance level. That would make us a bit uncomfortable with MATIC. But! We're not there yet.

Summing up

Onchain activity: strong

Exchange metrics and MVRV: ok, but approaching concerning levels

Social data: bullish

Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.