During the previous quarter, Polygon [POL] underwent a significant upgrade, introducing numerous modifications to its blockchain infrastructure.
An evaluation conducted by CryptoCrypto in Q3 2024 aimed to assess the blockchain’s performance following the upgrade and its impact on the token’s market value.
Observing Polygon’s Performance in Q3 2024
One significant development during the quarter was the transition of MATIC to POL, which was officially launched on September 4th.
The upgraded token, POL, now functions as the primary gas token within the Polygon ecosystem, signaling a pivotal shift for the blockchain.
However, despite the upgrade, Polygon encountered challenges as indicated in a recent analysis by Messari, which highlighted a decline in the network’s overall activity.
Key metrics such as daily active addresses and transaction volumes witnessed a notable decrease, reflecting a downturn in network engagement compared to the previous quarter.
For example, daily active addresses declined from 1.2 million in Q2 to 863,000 in Q3, with daily transactions also falling by approximately one million.
The average daily transactions on the blockchain dropped from 4.1 million in Q2 to 3.2 million in Q3, demonstrating a substantial decrease in network utilization over the quarter.
Prospects for Q4 Performance
Subsequent analysis by CryptoCrypto using Artemis’ data sought to determine if there was a noticeable uptick in network activity during Q4.
Despite an initial rise until October 18th, POL’s daily active addresses began to decline, mirroring a similar trend in daily transaction volumes within the blockchain.
However, positive indicators were observed in terms of captured value, as both POL’s fees and revenue demonstrated an increase in October.
Despite these positive signals, POL experienced bearish market sentiments as the token’s value dropped by more than 13% last week alone.
Within the last 24 hours, POL underwent a 6% price correction, positioning itself at $0.3257 with a market capitalization exceeding $2.5 billion.
Consecutive price drops have led POL to slip to the 33rd position in the crypto market rankings based on market capitalization.
CryptoCrypto intends to further analyze POL’s daily chart to gauge the likelihood of a trend reversal. Initial findings reveal a bearish crossover, with the Relative Strength Index (RSI) signaling oversold market conditions.
In such scenarios, an increase in buying pressure could potentially trigger a price upsurge in the near future.