Polygon dApp exceeds $100 million: will this help determine the price of MATIC?

Polygon’s Polymarkets app has generated over $100 million in volume and has also seen an increase in activity.
MATIC price declines and network growth.

Polygons [MATIC] The ecosystem has seen a significant amount of activity on its network. One of the reasons for Polygon’s success is the popularity of its decentralized applications.

Polymarkets show promise

Polymarket, an event-based and betting decentralized app, has generated over $100 million in volume with activity skyrocketing.

More users attracted to popular dApps like Polymarket translates to more users on the Polygon network overall.

Success stories like Polymarket attract more developers to build dApps on Polygon. This could lead to a wider range of applications being built on the platform, further enriching the Polygon ecosystem.

Increased adoption and network activity could positively impact the price of MATIC, Polygon’s native token. As more users engage with decentralized applications, demand for MATIC for gas fees and other functions could rise.

Source:X

How is MATIC doing?

At the time of writing, MATIC is trading at $0.5524, and its price has fallen by 1.08% in the past 24 hours. Since June 7, the price of MATIC has declined significantly.

During this period, MATIC price showed several lower lows and lower highs, indicating a bearish trend.

The Relative Strength Index (RSI) for MATIC also declined during this period, indicating that the bullish momentum around MATIC has diminished.

Besides, the total volume with which MATIC was traded also decreased by 30% over the past month.

However, MATIC’s Chaikin Fund Flow (CMF) has grown significantly, which means that funds flowing into MATIC have risen significantly in the past few days.

If money flow continues to rise, the chances of reversal rise. If MATIC can test and weaken the $0.5961 level, the price may aim to reclaim $0.7413 in the future.

Source: TradingView

Is your wallet green? Check out the MATIC profit calculator

As for on-chain metrics, AMBCrypto’s analysis of Santiment data revealed that network growth has dropped significantly in the past few days, meaning new addresses have lost interest.

If this trend continues, the chances of MATIC price reversal may be severely affected.