Total market capitalization global usually moved in the range of 1.3 trillion USD until a week ago. At that time, the price of mainly operating in the low region of 30,000 usd. After the price rebounded to $40,000, the total capitalization also climbed higher to $1.55 trillion at press time.

Source: Trading view

Currently, most of the , including , have all increased significantly in the past few hours. The 17th largest Alt is currently priced at 1.05 usd, up 13% in 7 days. Overall, the short-term outlook for looks pretty good. Now, the question is, will MATIC see the same gains as May and how will the price trend in the long term?

Although there are no exact answers to the above questions, the on-chain indicator provides certain indications. These signs can assist market participants in deciding whether to proceed MATIC or not.

Profitability of MATIC

In the past few months, MATIC has set many records without Which top has been achieved so far. There have been quite a few times that all addresses (100%) that own MATIC have been profitable, specifically in January, March and May. This achievement is considered quite rare in the market. .

Read more  Nearly 90% enterprises apply blockchain

Accordingly, the "huge" ROI is like a magnet attracting a large number of new retail investors to MATIC (Trade coin) in the past few weeks. However, are those addresses profitable now?

High number of OTM addresses (red) | Source: IntoTheBlock

At the time of writing, 49,46% addresses are in a state of “loss” (OTM). This means that the MATIC price is now relatively lower than the average cost at which it was purchased. On the other hand, only 38,78% total addresses are profitable (green). The remaining 11,76% (white) is at breakeven. Therefore, waiting for profits to increase before cashing out would be a better option for HODLer at the moment.

One of the reasons profits are shrinking could be a decrease in the number of active traders. The MATIC Marketplace had over 53.94k traders in May and has dropped to 44.4k at press time. However, a significant increase in the number of long-term traders and HODLers made up for this drop. Therefore, the decreasing number of active traders is not really a cause for concern for MATIC's (trading) long-term price action.

Supply on exchanges

Furthermore, the supply of MATIC on exchanges is at an all-time low. The aforementioned trend is clearly shown in the chart below. When the token started gaining traction in February of this year, the cumulative supply on exchanges stood at 1.48 billion. However, at the time of writing, it is only 209.8 million.

Read more  Lending Celsius wants to issue new tokens to repay debt

This essentially means that market participants have left MATIC full so far.


MATIC price (green) and exchange supply (pink) | Source: Santiment

Current social volume

Social volume also increased. On the daily timeframe, MATIC receives an average of 713 social mentions. Also, almost 120.4k MATIC related posts were made in the same time. In fact, LunarCrush data indicates that social volume increased by 9.7% in the last 24h.

Social Volume (blue) | The source: LunarCrush

Whenever people discuss any kind on social media, its price tends to move in one of two directions. Therefore, the importance of this metric should not be taken for granted.

Observing the positive status of the above indicators, it is likely that MATIC will be more active in the coming days. Therefore, HODLing MATIC (Buy sell ) at this stage seems to be more profitable than exiting the market.

Join our channel to get the latest investment signals!