Polygon (MATIC) Displaying Conflicting On-Chain Data Trends Amid Market Plunge

Polygon (MATIC) is displaying conflicting on-chain data trends, especially as it relates to the profitability of its addresses.

Polygon (MATIC) is displaying conflicting on-chain data trends, especially as it relates to the profitability of its addresses.

According to data from crypto analytics platform IntoTheBlock (ITB), only 5.63% of Polygon addresses are either in profit or at the money or breakeven point.

This is a surprising statistic considering the widespread adoption of Polygon-focused technologies. One such, the Polygon CDK, is powering different new chains as the L2 pivots, extending its service to developers looking to build related or alternative chains.

Thus far, Polygon’s CDK is now being used by Flipkart, OKX and a host of other innovators looking to make a difference in Web3.0. Besides CDK, Polygon zkEVM is another technology that shows Polygon’s advanced capabilities.

However, despite these innovations, MATIC is down by up to 4.9% in 24 hours to $0.5516. Over the past month, the token has further slipped by 24.34%, accelerating the plunge in its associated ecosystem address profitability.

Interestingly, this trend appears to be common among Ethereum layer-2 protocols. While Polygon is recording intensive address losses, Bitcoin’s address profitability is pegged at 86.81%, despite the recent sell-offs.

One consolation for Polygon is that other top L2 protocols, like Arbitrum (ARB), are also recording a similar address onslaught. Per ITB data, more than 97% of addresses are in losses, despite a large ecosystem and embrace of the product.

News source：https://www.kdj.com/cryptocurrencies-news/articles/polygon-matic-displaying-conflicting-chain-data-trends-market-plunge.html

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