- The price decline of Polygon MATIC accelerates as worries about the global macroeconomy intensify.
- The last day has seen a significant decrease in Polygon’s MATIC.
- The correction occurs after a widespread sell-off in the cryptocurrency market due to multiple broad concerns.
- The latest events in the market make one wonder what MATIC will do next.
The native token of the Polygon PoS chain, MATIC, saw a parabolic run in Q1 2024. Since then, it has been stuck in a months-long drop, broken up by a consolidation in Q2 and a relief rally in July 2024. This drop seems to have accelerated over the weekend in a panic-driven cryptocurrency market meltdown that has destroyed twelve figures in value.
Polygon Reaches Multi-Year Lows with MATIC
The Polygon PoS chain’s native token, MATIC, is in free fall. The asset’s price has not been this low since June 2022. It was trading as low as $0.3342 during the course of the last 24 hours before paring some losses to trade at about the $0.36 price point as of this writing.
The sharp MATIC price correction coincides with a panic that has caused the cryptocurrency market to lose around $300 billion in value in the last day, according to CoinGecko data as of this writing. The total market cap has dropped from over $2.25 trillion to about $1.96 trillion.
Investors are becoming less risk-tolerant due to a number of major worries.
To stop the yen from falling against the dollar, the Bank of Japan has become more aggressive and raised interest rates for the first time in 17 years. Simultaneously, investors are growing more fearful of a U.S. recession as many argue that the Federal Reserve has been waiting too long to drop interest rates in response to a July 2024 jobs report that was weaker than expected. The growing share price of American aerospace and defense company Lockheed Martin is a contributing factor to the growing war apprehensions amidst escalating tensions in the Middle East.
Amidst an already difficult year, recent events in the market raise concerns regarding MATIC’s next course of action.
From Here, Where Does Polygon’s MATIC Go?
The previous time Polygon’s MATIC traded in this area, based on historical price activity, it started an almost six-month-long rally that saw it rise by over 230% to highs over the $1 price point. But with so many underlying basic reasons, it’s crucial not to depend solely on past price behavior.
Holdings of MATIC securities should keep a close eye on how the Fed handles concerns about the recession in light of unverified reports that an emergency meeting is scheduled for Monday, August 5.
Conversely
Even before the latest macroeconomic worries, Polygon MATIC’s trend was concerning.
Not all significant cryptocurrency assets have seen significant price declines in the last day, including MATIC. As of the publication of this article, XRP, SOL, and BNB were all down roughly 15%.
The Reason This Is Important
Over the past year, Polygon’s MATIC has struggled to show strength, putting most holders in the negative while other assets have shown triple-digit percentage gains. These losses are probably going to get worse given the current macroeconomic outlook.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
