Polygon (MATIC) has outpaced Bitcoin in user growth for 2023, according to a report by Flipside Analytics, hinting at potential positive price action for MATIC in 2024. With 15.2 million new users acquired in 2023, Polygon recorded a 50% higher growth rate than Bitcoin’s 10.6 million new users.
Despite recent price performance remaining subdued compared to other altcoins, the report highlights fundamental growth signals that could impact MATIC price positively. The acquired user count serves as a proxy for measuring global adoption and user acquisition, positioning Polygon as a frontrunner behind Ethereum.
The report suggests that if sustained, the substantial increase in new users on the Polygon network could lead to heightened market demand for the MATIC token. As these users intensify their network activity, the organic growth in demand may positively impact MATIC prices in the long run.
Notably, the report also emphasizes that Polygon is attracting an unusually high number of transactions from new users, further confirming the network’s appeal and suggesting that a significant portion of the 15.2 million new addresses are becoming active participants.
In terms of short-term price predictions, MATIC is currently trading at $0.73, facing resistance at $0.80. The report points out that breaking above the $0.80 resistance could open the doors for a retest of the $1 area. However, the largest cluster of current Polygon token holders acquired MATIC at an average price of $0.80, indicating potential challenges for the bulls in surpassing this level without significant momentum.
Looking ahead, the report highlights key factors that could drive MATIC price growth in 2024, including ongoing token upgrades and strategic partnerships. The transition from the MATIC to a more decentralized POL token and a partnership with Chainlink to integrate off-chain price feeds into Polygon dApps are among the developments expected to contribute to Polygon’s growth.
In conclusion, the positive user growth metrics, combined with network upgrades and strategic partnerships, position MATIC for potential upside in 2024, with short-term resistance at $0.80 presenting a crucial level for the bulls to overcome.
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