Yahya 
Analysts noted that MATIC, the native token of Polygon, could be nearing an uptrend and is showing a large amount of onchain activity. On August 28, the blockchain analytics platform Santiment stated an increase in active addresses and accumulation of coins that have not been in circulation for a long time which may signal a MATIC bounce.
Santiment claims that the increase in inactive token transfer this week corresponds with the second-highest Polygon address interaction with the network this year. For MATIC, which has faltered recently, this rise in activity might indicate a good turn.
This latest surge runs against to a longer-term downturn in address activity. Polygon-based data shows that address activity dropped significantly, from 1.6 million in late July to about 70,000 in late August. Daily network transactions also dropped from over 5 million in March to about 3 million by the end of August.
MATIC remains at bear market levels even with the higher activity this week. On August 25 the token momentarily peaked at $0.58, but it lost momentum rapidly and dropped 24% to a 10-day low of $0.434 on August 29. According to CoinGecko MATIC is still down 85% from its all-time high of $2.92 in December 2021.
Furthermore adding to the events is Binance’s announcement on August 28 supporting the forthcoming network token conversion from MATIC to POL, set for September 4. This change could affect the future performance of the token.
Not all recent news, meantime, has been favorable. Polygon’s Discord channel was hacked on August 24 in an assault aiming at the servers of numerous other blockchain projects as well.
The next weeks will be vital in deciding if MATIC’s indications of possible recovery can be maintained.
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