On December 26, Polygon's native token, MATIC, hit a new all-time high (ATH) of $2.9 as the holiday season bullishness drove the bigger market. However, MATIC's recent price discovery was driven by increasing activity and interest in the network rather than bigger market moves.
MATIC flying high
Driven by sustained network growth and high active addresses, MATIC’s price recently broke ATH and has been in a larger uptrend since December 15. Its high address activity has continued to show increased interest surrounding the Polygon Network with over 8,000 daily active addresses making MATIC one of the top-5 most active coins and most used coins.

Source: Sanbase
HODLers distribution by concentration presented that over 75% of the ownership constitutes whales. For MATIC, whales from 1million to 10million were comfortably accumulating until the recent rally while smaller whales were showing some accumulation patterns too.
In terms of fundamentals, MATIC looked good and presented a healthy rally but what does its rise tell about the market.
MATIC rise could point to..
Well, the recent MATIC rally saw the altcoin independently rally as its BTC correlation saw a new all-time low.
Previously, Solana and Terra (LUNA) showed a similar price dissociation from the market, with the two assets' connection to BTC likewise seeing lower boundaries.Analysts have noticed an increase in capital inflow in networks like Polygon, Solana, and Terra over the previous month, indicating that MATIC's gains are symptomatic of the rise in L-1 protocols. MATIC was in price discovery mode as well, similar to Terra and Solana during their earlier rallies.
L-1s' total value locked increased dramatically as retail and institutional interest in them grew over the last year. So far, it appears that L-1s will be ready to take on 2022 if network development and on-chain activity continue.
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