In recent weeks, the network activity of Polygon (MATIC) has been thriving, indicating positive performance. Solana (SOL) has also demonstrated strong performance, albeit slightly trailing behind MATIC in certain important metrics.
Although both blockchains showed promising network activity, MATIC’s price action turned bullish while SOL’s price chart turned bearish. However, some datasets also hinted that MATIC might soon lean towards a bearish market sentiment.
Solana vs Polygon
Recent data indicated a close competition between both blockchains in terms of network activity. A tweet by Narb on July 3 revealed that Polygon had 400,000 daily active users, while Solana had 100,000 fewer.
Interestingly, despite having a smaller user base, Solana exhibited higher daily transaction numbers compared to Polygon. This metric suggested better user retention and activity on the Solana blockchain.
However, Solana still lagged significantly behind Polygon in terms of Total Value Locked (TVL). According to Artemis’ chart, at the time of writing, MATIC’s TVL was nearly $1 billion, while SOL’s TVL was only around $270 million. A similar trend was observed in DEX volumes, favoring MATIC.
Both networks had comparable market caps at the time, with SOL ranked as the 10th largest token and MATIC as the 12th. However, this changed in the last 24 hours.
CoinMarketCap reported a 2% increase in MATIC’s price in the last 24 hours, while SOL’s value declined. Currently, MATIC was trading at $0.7092 with a market cap exceeding $6 billion.
However, according to CryptoQuant, MATIC’s exchange reserve was increasing, indicating selling pressure on the token, which signaled a bearish trend.
Looking ahead
While MATIC’s MACD indicated a bullish advantage in the market, other market indicators favored the sellers. The Exponential Moving Average (EMA) Ribbon, in particular, displayed a bearish signal as the 20-day EMA remained below the 55-day EMA.
Moreover, MATIC’s Relative Strength Index (RSI) experienced a slight decline, which could potentially pose challenges in the upcoming days.