Polygon is a crypto project which could attract many investors. MATIC is the native token is this platform. Yesterday we warned about Polygon status. In this article we are going to take a look at Polygon fundamental analysis. Let’s get into it.
Polygon Fundamental Analysis
First thing to check is NVT ratio which stands for Network Value to Transaction. As its name implies, this ratio comes from dividing a cryptocurrency market cap by its transaction value. A high NVT means that network value is more than on chain value transferred. Simply put, the network is on a potential growth path, and if it grows, that growth is not out expectation.
Let’s check Polygon NVT together. This ration for Polygon is currently in its highest level in the last 9 months. While network value has grown, transactions value has fallen far behind. In order for NVT growth to be reasonable, value of transactions must also grow. The second issue is Polygon market depth. This shows that people are still optimist about MATIC. On the other hand, the average time for holding MATIC is about 4.4 months. This means that mid-term holders sell MATIC on peaks.
As a result, MATIC is still promising for most of its investors. The only concern is that %80 of the tokens supply is in whale’s hands. This can affect retailers. Therefore, it is better to check polygon fundamental analysis.