Polygon’s value has fallen by 27% since mid-February

One of the most popular cryptocurrencies in the world, MATIC $0.49 Polygon -0.49% Market capitalization $4.55 billion VOL. 24 hours $45.4 million , which is among the top 10 tokens by market capitalization, has fallen by 27% since mid-February.

Despite the recent correction, Polygon remains popular. According to Santiment, the number of daily active addresses in the MATIC network increased from 150,000 to 175,000 between February 5 and March 6.

Polygon is a Layer 2 (L2) scaling solution touted as a solution to Ethereum’s capacity issues. Despite Ethereum’s successful transition to proof-of-stake (POS) and network upgrades, some crypto investors are concerned about the long-term viability of the Polygon ecosystem.

The Global In/Out of Money data, which shows the distribution of MATIC holders around current prices, indicates a bullish outlook for Polygon. At current prices, only 33% of holders are in profit, indicating significant room for growth. Investors who are not making a profit are unlikely to sell their tokens at a huge loss now.

If MATIC increases the resistance level of $ 1.25, the digital asset may rise to $ 1.85 in the future, analysts believe. It is worth noting that the highest price of Polygon was recorded on December 27, 2021 — $ 2.92.