- Less than 45% of holders made a profit.
- MATIC’s price could rise to $1.30 as Napoli upgrade approaches.
Polygon [MATIC] Erasing much of the recent gains has only caused holders pain, data from IntoTheBlock shows. According to the crypto analysis platform50% of MATIC holders had a loss.
On the other hand, 44% had a profit, while the remaining 6% broke even. This data comes as a surprise when you consider how the token was performing at a given point in time.
Source: IntoTheBlock
A few weeks ago, AMBCrypto reported how Polygon’s token rose and showed the potential to reach $2. However, the past few days have not been great for the cryptocurrency.
At the time of writing, CoinMarketCap revealed that MATIC’s price was down 4.44% over the past seven days. Specifically, MATIC’s value was $0.99, indicating that bulls found it difficult to revisit the psychological resistance of $1.
However, this drop does not mean that MATIC was out of the race for tokens that would perform well this season. But recovery could be important for short-term investors.
Polygon wants MATIC to cook
So does Polygon have a significant upgrade that could fuel a ‘buy the rumor’ boom? Well, AMBCrypto discovered there might be one.
On March 27, the project revealed that a new upgrade was in the works, the ‘Napoli Upgrade’. According to the blog postthe upgrade would help Polygon achieve network consensus.
It added that this would be done through the integration of improvements to parallel execution and new operational codes for the Ethereum Virtual Machine (EVM).
As a result of the Napoli upgrade, Mumbai, a testnet of the Proof-of-Stake (PoS) network, would be phased out in April. In turn, the Amoy Testnet would take his place.
Like previous upgrades, this upcoming development could be bullish for MATIC. Should buying pressure increase in the future, MATIC’s price could rise towards $1.30.
Some difficulties arise
Despite the bullish potential that MATIC has, Polygon still has some challenges. One of these was with its Total Value Locked (TVL).
In 2021, Polygon’s TVL had an incredible run reaching almost $10 billion. But DeFiLlama press time data showed the statistic was just $1.07 billion.
Source: DeFiLlama
TVL measures the value of assets locked or deployed in a protocol. If it increases, it means market participants have added liquidity to the protocol while helping to improve its health.
Realistic or not, here is the market cap of MATIC in ETH terms
The opposite happens when the metric decreases. Over the past 30 days, protocol deposits under Polygon have increased by 3.66%. However, the increase was small compared to other chains.
But it is not always the case that this measure influences the price. As such, the value of MATIC can increase regardless of the state of network health.