Polygon MATIC may be ‘brewing’ reversal amid sudden spike in onchain activity

Polygon’s native token MATIC could be in for a resurgence soon. Analysts have spied a “notable spike” in active addresses and dormant coins coming back to life. 

On Aug. 28, blockchain analytics platform Santiment said there had been a surge in onchain activity on Polygon.

A chart shared on X shows a strong surge in dormant token movement this week, coinciding with this year’s second-highest number of Polygon addresses interacting with the network. 

“A notable spike in on-chain activity may be a sign that a MATIC reversal may be brewing soon,” Santement stated.

Polygon onchain activity resurgence. Source: Santiment

The data appears to be a reversal from a longer trend.

Data from blockchain explorer Polygonscan shows a slump in address activity beginning in late July. It fell around 50% from 1.6 million to 700,000 in late August.

Daily transactions have also been trending down from over five million in March to around three million in late August, according to Polygonscan.

But despite this week’s spike in activity, as reported by Santiment, Polygon (MATIC $0.4384) remains at bear market levels. 

Active Polygon addresses. Source: Polygonscan

MATIC prices jumped to a two-month high of around $0.58 on Aug. 25 but could not sustain momentum and fell back rapidly. 

Since then, the layer-2 network token has dropped 24%, falling to a 10-day low of $0.437 on Aug. 29, following a further 5% decline over the past 24 hours.

MATIC remains down 85% from its December 2021 all-time high of $2.92, according to CoinGecko. 

On Aug. 28, Binance announced that it would support Polygon’s upcoming network token migration from MATIC to POL, scheduled for Sept. 4. 

Meanwhile, the Polygon community’s Discord channel was compromised on Aug. 24 in a widespread attack that compromised the Discord servers of several blockchain projects.