Polygon (MATIC): 92% of Investors Underwater, But Here's the Silver Lining
Polygon’s native token, MATIC, is in the news, and not all of it is good. A staggering 92% of MATIC investors are currently underwater, facing significant losses as the MATIC price continues to struggle. While most of the market rallied to new yearly highs, MATIC has lagged behind, leaving many holding the bag.
But is there hope for MATIC investors? The answer may surprise you. While the current situation looks bleak, several factors suggest there may be light at the end of the tunnel for MATIC.
Polygon vs. the Competition: Arbitrum and Base
Let’s dive into how Polygon (MATIC) is doing and compare it with its rivals, Arbitrum and Base. We’ll explore total value locked (TVL), user activity, transaction volumes to get a clearer picture of Polygon's standing in the Layer-2 scaling solutions landscape.
Polygon, previously known as Matic Network, has faced significant challenges over the past few years. As an Ethereum scaling solution, Polygon is still prominent, but competition is fierce.
TVL and Network Activity Declining
Unfortunately, Polygon and zkEVM’s TVL registered declines along with their network activities. This is a cause for concern, indicating a decrease in user engagement and investment within the Polygon ecosystem. 17 de sept. de 2025 is of interest as well for the market.
Most MATIC Addresses “Out of the Money”
The harsh reality is that most MATIC addresses are “out of the money.” This means that the vast majority of MATIC holders are currently holding their tokens at a loss. This widespread underwater status contributes to selling pressure and hinders potential price recovery.
The Silver Lining: Potential for a Bullish Reversal
Despite the negative news, there are potential catalysts for a bullish reversal. Here's where the silver lining comes in:
- Low Whale Activity: Declining whale transactions may actually reduce short-term volatility and support a more stable price floor, creating the foundation for a potential price increase.
- Recent Price Uptick: MATIC was up by more than 1.5% in the last 24 hours. While this is a small gain, it could signal the beginning of a positive trend.
While the road ahead may be bumpy, and the underwater status of most MATIC investors is undeniable, these potential positives offer a glimmer of hope for a brighter future. Further developments in the Polygon ecosystem and overall market conditions will ultimately determine whether MATIC can recover and deliver returns for its patient investors.