The Polygon price (MATIC) has decreased by 19% over the past 30 days. The token has recovered several times, but the last few weeks have seen extremely lackluster price movement.
MATIC On Chain-metric Analysis
Santiment claims that Polygon's future is still very dismal. The Open Interest (OI), or the total value of all pending contracts in the market, contributes to this. The OI for each trade was $38.85 million at the time of publication.
This level was last attained by the metric in June 2022, particularly during the downturn in the market. For those who are unfamiliar, a rise in OI signifies that traders are putting more liquidity into contracts linked to a token, thereby increasing access to the cryptocurrency.
This improvement in net positioning typically results in a price increase. On the other hand, a decline in open interest indicates that traders may be withdrawing funds, which could hurt the price.
