Are Polygon’s efforts to go green misfiring due to MATIC’s red resistance

Are Polygon's efforts to go green misfiring due to MATIC's red resistance

After the recent successful completion of the Ethereum [ETH] Merge several other tokens benefited from it. And one of them happens to be Polygon [MATIC]. 

The Polygon blockchain, in the past, made several efforts to reduce its network footprint by launching the green manifesto. However, recently it announced that its network footprint had been reduced by 99% thanks to the Merge.

#Polygon has already offset its network emissions, launched the Green Manifesto, & with the Merge, enjoys a 99% reduction in network footprint. 💚

Building #onPolygon? Your network emissions are accounted for. ✅

Claim your Carbon Neutral badge here👇

— Polygon – MATIC 💜 (@0xPolygon) September 16, 2022

Despite this positive development, MATIC followed ETH with regards to its price action. MATIC’s chart was mostly painted red. At press time, MATIC was trading at $0.8126, which is a negative 9% growth in the last seven days. The alt’s current market capitalization stood at $7,090,824,898.

What’s cooking in the community?

Though there have been several other developments in the community with the potential to push MATIC’s price upward, the stars were not in MATIC’s favor. For instance, MATIC got listed on Binance Card in Argentina. This would allow holders to make purchases at over 90 million merchants across the globe.

We are pleased to announce that $MATIC is now listed on the #Binance Card in Argentina 🇦🇷

Your $MATIC can now be used to make purchases at 90MN+ merchants in thousands of stores around the 🌏

Also get up to 8% cashback & zero fees on ATM withdrawals 👇

— Polygon – MATIC 💜 (@0xPolygon) September 15, 2022

However, several on-chain metrics suggest that instead of a hike, we can expect a further drop in the coming days. Santiment’s data pointed out that MATIC’s 30-day Market Value Realized Value (MVRV) ratio registered a downtick. This only pointed towards some darker days ahead.

Moreover, MATIC’s volume also decreased, which in general is a bearish signal. MATIC’s net deposits on exchanges were high compared to the seven-day average, indicating higher selling pressure.

Nonetheless, several metrics were also in favor of the token, giving hope for a price surge in the days to follow. Interestingly, after falling considerably in the last month, MATIC’s development activity registered an uptick last week. This can thus, be considered as a positive sign as it reflects developers’ efforts to improve the network.