Journalist
Posted:
- Polygon has reached a new high in the number of daily transactions.
- This was due to the activity around the Ordinals-inspired token standard on the network.
Daily transactions rely on leading Ethereum [ETH] side chain polygon [MATIC] rose to a record high of 16.4 million on November 16, data show Polygon scan showed.
Source: Polygon scan
Information obtained from the data provider showed that the daily number of transactions on the network grew by 166% between November 15 and 16, from 6.17 million to more than 16 million within a 24-hour period.
This unprecedented spike was attributed to the influx of users flocking to the network to create the new Polygon-based non-fungible token (NFT) collection POLS, an Ordinals-inspired token standard on the network.
According to data from Dune AnalyticsSince POLS began minting, a total of 102.79 million MATIC tokens, worth approximately $88 million, have been issued as gas fees. The increase in user activity on the Polygon network pushed average gas rates to new highs.
On November 16, the average fee paid to transact on the sidechain rose to a high of 700 GWEI, compared to just 100 GWEI the day before.
Source: Dune Analytics
With a decrease in the number of POLS coins in the last 24 hours, the average transaction fee on Polygon was less than 200 GWEI at the time of writing.
MATIC also saw increased demand
As the minting of POLS gained momentum, demand for Polygon’s native token MATIC soared. This was due to users seeking the altcoin to settle sidechain transactions.
AMBCrypto’s assessment of MATIC’s on-chain performance revealed strong demand for the altcoin.
The number of new addresses created on the Polygon network totaled 1,217, up 26% from the 900 registered the day before
Similarly, the daily count of active addresses on Polygon witnessed growth. This increased by almost 10% between November 15 and 16, according to data from Santiment.
Source: Santiment
During the intraday trading session on November 16, MATIC exchanged hands as high as $0.93. While demand dropped as POLS activity began to decline, the price of the alt initiated a decline.
At the time of writing, MATIC was trading at $0.86, with its price up just 2% in the past 24 hours, according to CoinMarketCap.
The position of the token’s main momentum indicators, observed on a 12-hour chart, confirmed the decline in MATIC accumulation.
Read Polygon [MATIC] Price prediction 2023-24
At the time of writing, the Money Flow Index (MFI) was below the midline. The Relative Strength Index (RSI) was in a downtrend and was about to cross below the line as well.
This showed that MATIC traders preferred selling over buying within the reporting period.
Source: MATIC/USDT on TradingView
