MATIC Price $1.17: Exploring its On-going Correlation with Ethereum

Despite the recent price upsurge of several leading cryptocurrencies MATIC’s performance remained depressed due to several factors. However, it recorded some significant gains in its other non-monetary metrics such as its user base. Sadly, since the start of the year MATIC’s price performance was outpaced by that of the Ethereum crypto.

In this analysis, we focus on MATIC’s recent price movement as well as its correlation with Ether (ETH). We will also assess MATIC price catalysts and its prediction. Finally, we will summarize how people can purchase MATIC on Gate.io.

Growth in Active MATIC Addresses: A Historical Look at its Impact on Price

As hinted above, in terms of price performance MATIC lagged behind major crypto performers like Bitcoin and ETH since the beginning of the year. Nonetheless, it has been recording significant network growth in terms of active MATIC addresses.

The MATIC Polygon analysis indicates that the token registered a steady increase in the number of active addresses during the first two months of the year, indicating a bright future. For example, within a 30-day period that stretched to 29 February the Active MATIC addresses grew by around 60%.

Also, recent MATIC Polygon updates indicate that on 6 February the network recorded 10,439 active addresses. But that was not the end of its user base growth since the number of active addresses jumped to 15,708 on 3 March.

Growth in Active User Base Correlates with MATIC Price Rise

In broad terms, the increase in MATIC wallet users has been correlating with the MATIC Polygon price rise. As an example, the surge in its active addresses on 3 March was accompanied by a 37.35% price spike. As a result the value of MATIC cryptocurrency reached $1.14 which it last attained in April 2023.

The following graph illustrates the correlation between the MATIC polygon crypto price and the increase in its active addresses.

MATIC Price and Active Addresses –Santiment

As The Graph indicates, as the number of MATIC blockchain active wallet addresses increased the crypto price also rose. However, it is important to note that if the growth of active addresses stops, the cryptocurrency may enter a consolidation phase, which may require smart traders to change their MATIC trading strategies.

However, after a possible consolidation, the Polygon MATIC future price may correct or enter a downtrend.

Ethereum and MATIC – the Bullish Synchronization

The MATIC cryptocurrency price has been correlating with the Ethereum one for a long time. For most of the time the two crypto assets maintained a correlation of over 0.8. However, recently their correlation rose to 0.95. The next graph shows the recent ETH and MATIC price growth for a period that stretched to 3 March.

MATIC and ETH YTD price growth. Source: Messari

Despite their correlation, the MATIC price has been increasing by a smaller margin than ETH, indicating a potential for a strong Polygon MATIC future rise.

So far this year, the price of ETH has increased by 4.5 times more than that of MATIC. Based on MATIC price today and ETH’s momentum, analysts believe that the value of the cryptocurrency may reach $1.24 in the near future.

The recent MATIC coin news also shows that the value of the cryptocurrency is lagging that of the 10 largest cryptocurrencies, except memecoins, by about 10 times. Compared to the major crypto assets MATIC is only performing better than Avax.

Nevertheless, since the ETH price has been in an upward price movement for several months the market is optimistic that investing in MATIC crypto may turn profitable in the near future as its price is likely to rally following ETH’s past and current price movement.

MATIC’s Possible Short Term Price Movement

The IOMAP chart indicates that there is much MATIC support around $1.10. As a result, it may be difficult for the coin price to fall below that level. The following diagram summarizes the MATIC market situation.

MATIC IOMAP chart – IntoTheBlock

The situation which the above IOMAP shows creates different short term price permutations. First off, if that support level holds the price will not be able to fall further.

Nonetheless, if the price rises and breaks the $1.17 level MATIC may enter a strong bullish momentum which can push its value to $1.24 or higher. This is because if the price rises above $1.14 many addresses will make profit thereby reducing its selling pressure.

On the other hand, if the MATIC price falls below $1.14 and worse still below $1.10 the coin may enter a strong bearish period. Basically, if its price falls below these two significant levels the market may lose confidence thereby triggering mass sell-offs.

MATIC Price Prediction for 2024 and 2025

Several analysts have come up with their Polygon MATIC future price predictions. For example, Gate.io’s price prediction is highly bullish as it anticipates the value of MATIC to reach $2.50 by the end of 2025. Also, due to the anticipated bull run that may stretch from 2024 to 2025 Coinpedia forecasts that the price of MATIC may trade at around $4 in 2025.

On the other hand, Crypto Bulls Club predicts the MATIC price to fluctuate around $2.89 in 2024 and $3.38 in 2025. In addition, Cryptoticker forecast MATIC to be bullish between now and 2030 which may lead its price to range between $5 and $30 in 2030.

How to buy Polygon (MATIC) on Gate.io

To buy Polygon (MATIC) on Gate.io you should follow several steps. First, create and verify your account on the exchange. If you already have an account, login and select the payment method you want to use.

You can use a credit/debit card, wire transfer or P2P trading. Nevertheless, if you hold any major cryptocurrencies like bitcoin, ETH or USDT you can convert it to MATIC.

Now, to start the buying process you hover your cursor on “Buy Crypto” and select your preferred payment method, as the following picture indicates.

Once you click on your preferred payment method, follow the instructions you get.

Conclusion

Since the beginning of the year MATIC has not performed as expected since it lags behind the other major cryptocurrencies. Although it has a high correlation with ETH its value has been increasing by lower margins than the number one altcoin.

Nonetheless, analysts predict the MATIC price to fluctuate between $2.50 and $2.89 by the end of the year.

Main Image Source: DepositPhotos