Here’s why MATIC could come together

• Artemis data shows that Polygon’s TVL is increasing, suggesting growing activity and interest in the MATIC ecosystem.
• On-chain data shows that MATIC’s open interest is rising and the long-short ratio is above one, suggesting a bullish move.
• Investors should be wary of negative P/L spikes in the network.

The price of Polygon (MATIC) is up 27% since the beginning of this week and as of Thursday is still trading up 0.5% at $0.52. On-chain data shows that MATIC’s Total Locked Value (TVL) is increasing, Open Interest (OI) is increasing, and the Long-Short ratio is above one, suggesting a continuation of Polygon’s bullish movement in the coming days.

Polygon price is gaining traction as on-chain data suggests a positive trend

Artemis crypto tracker data shows that MATIC’s TVL rose from $853.53 million on Monday to $916.70 million on Thursday, steadily increasing since August 5th.

This 7.5% increase in TVL indicates growing activity and interest within the Polygon ecosystem. It suggests more users depositing or using assets under MATIC-based protocols, adding credence to the bullish outlook.

TVL polygon graph

Data from CoinGlass shows that Polygon futures OI on exchanges is also increasing. OI indicates the total number of outstanding derivative contracts that have not been settled (settled by delivery) and whether the cash flows in the contract are increasing or decreasing.

OI growth represents new or additional money entering the market and new purchases, suggesting an optimistic trend. When OI falls, it is usually a sign that the market is liquidating, more investors are leaving and the current price trend is ending.

The chart below shows that MATIC’s OI rose from $114.74 million on Monday to $209.39 million on Thursday, the highest OI since mid-June. This indicates that new or additional money is entering the market and new purchases are taking place.

MATIC Open Interest chart

According to Coinglass data, Binance’s long-short ratio of MATIC is 1.56. This report reflects bullish sentiment in the market, as the number above suggests that more trades anticipate rising asset prices, reinforcing Polygon’s bullish outlook.

MATIC long-short ratio chart

Despite new acquisitions, increased blockchain usage, and growing sentiment, MATIC’s net profit/loss measurement shows negative growth. This indicates that its holders, on average, are experiencing losses, which could increase supply on the stock market. Accordingly, investors should not anticipate an immediate price increase for the token.

Graph of profit/loss made in the MATIC network