30 Apr

The majority of Polygon's [MATIC] profits from 2023 and early 2024 have been lost. Will the losses be recouped?

Only a small number of the altcoins that saw significant recovery in Q4 2023 have continued to gain traction. A notable exception in both Q4 2023 and Q1 2024 was Solana [SOL].

Sadly, other altcoins suffered over that same time frame as they attempted to carry over their late 2023 rebound into 2024. Some even undid the meager advances they had noted.

According to ColdBloodShill, a pseudonymous expert, Polygon [MATIC] is among the laggards. The expert pointed out that, 

"For instance, $MATIC is trading below the crucial support level and has reversed its whole 2023–2024 surge. While other alts keep up the progress and gains they've made over the previous seven months, BTC holds up extremely well."

According to a quick review of MATIC's technical analysis, $0.75 will serve as important support in Q4 2023. However, in Q2 2024, it turned into resistance, wiping off a significant portion of the gains from the previous year.

Market division: Potential losses for MATIC and other parties

A "market bifurcation" occurs when one token or set of tokens outperforms others in the market.

Increased risk appetite, more mindshare on social media, compelling stories, etc., could all be contributing factors. Selective rallies in the market cycle of 2024 leave much more questions than solutions.

With a wink at MATIC, the analyst said,

"Is it truly inevitable for these alts to become obsolete? Is the market starting to phase out coins in favor of BTC or those that perform well?"

The analyst went on to explain that the market split isn't simply hurting MATIC by pointing to parallel trends with Lido [LDO] and Apecoin [APE].

However, after being identified as one of the "zombie chains," MATIC has been up against a lot of negative press.

The quality partnership and "network effects" were ineffective, as evidenced by the price charts. The founder of Polygon, Sandeep Nailwal, teasingly summed it up as follows:

"Over the past two days at @0xPolygon, swaps are allowed on Robinhood wallets, P2P transfers of RWAs have been implemented by Franklin Templeton, USDC transactions are allowed on Stripe, and Spencernoon released a research stating that Polygon has the largest stablecoin user base. Someone said, "The price is not moving, which is why Polygon is so dead."

At this stage, it may be necessary to continuously assess the narrative's strength and the speed of the price movement in order to rotate one's "bags" for the greatest possible returns.

Because of this, market bifurcation necessitates the use of extreme caution, thorough investigation, and updated risk management to protect against severe price sluggards as the entire market moons. 

April 2024, Cryptoniteuae

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