Daily transactions on Polygon have dropped by 50%.
The sudden decline in network activity is correlated to an increase in gas prices.
MATIC is yet to react to the new on-chain dynamics. It’s consolidating in a tight range.
Share this article
Polygon has increased transaction fees to avoid spam attacks on the network. However, the community has not welcomed the update. MATIC is at risk of a steep correction.
Polygon Network Activity Drops
On-chain activity on Polygon is plummeting.
The average daily transaction count on the network has dropped by nearly 50% over the last few days. Roughly six million transactions were made on Oct. 3, while on Oct. 11 only three million transactions were recorded.
The considerable decline in network activity appears to be correlated to the recent spike in gas prices.
Polygon’s co-founder Sandeep Nailwal proposed to increase the transaction fees on the network from 1 gwei to 30 gwei in an attempt to curb spam transactions on the blockchain. The move sparked criticism among the community over how “decentralized” the network is. However, rather than a default upgrade, the change was more of a “recommendation.” Nailwal said:
“This change has been recommended to reduce the spam transactions in the network. As it is a client-level configuration, you are free to run your node with old/different settings as per your wish.”
While the spike in transaction fees aims to make spam attacks more difficult, it also discourages developers from building new applications on top of the Polygon network. Get Protocol developer kasperk said their project was considering moving to other networks after the cost of minting NFT tickets suddenly increased by a factor of 30.
MATIC Edges Closer to Volatility
Polygon’s MATIC token does not appear to have reacted to the gas price increase yet. It’s currently consolidating, making a series of lower highs and higher lows, which has led to the formation of a symmetrical triangle on its daily chart.
As MATIC edges closer towards the triangle’s apex, the odds for a substantial spike in volatility increase. A daily candlestick close outside of the $1.40 to $1.10 price pocket should determine where the asset is heading next.
MATIC could rise by more than 84% to retest the mid-May all all-time high of $2.70 after overcoming the overhead resistance. Still, a spike in selling pressure that pushes below the $1.10 support level could result in a steep correction to $0.62.
This news was brought to you by Phemex, our preferred Derivatives Partner.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
ZED RUN Gets In-Game Ethereum to Polygon Bridge
ZED RUN has integrated a native bridge with Biconomy to transfer assets between Polygon and Ethereum. ZED RUN Integrated Biconomy Bridge Virtually Human Studio, the creators of the popular NFT-based…
Polygon Users Overtake Ethereum Amid Crypto Gaming Mania
Daily active addresses on Polygon have overtaken Ethereum after a surge in users from the upcoming mobile gaming app Arc8. Polygon Users Hit All-time High The number of Polygon users…
Panther and Polygon are Taking Privacy to New Heights in DeFi
Panther Protocol has announced a strategic partnership with the leading Layer 2 scaling solution Polygon. Panther and Polygon Tackle Privacy Panther Protocol, who is building their MVP on Polygon, aims…
How to Trade Using the Inverse Head and Shoulders Pattern
In stock or cryptocurrency trading, you may have heard of the term “inverse head and shoulders.” Also known as the “head and shoulders bottom” formation, the inverse head and shoulders chart pattern can…