Polygon Ranks Second to Ethereum for Tokenized Assets: Will It Help MATIC?

• The polygon network has seen an increase in interest for RWA, also thanks to a recent trial by ECB.
• MATIC traction on the price charts has slowed slightly, with $0.51 as the key price level.

Polygon [MATIC] Founder Sandeep Nailwal has acknowledged the growing interest of Real World Asset (RWA) in Ethereal [ETH] L2 Network. Its observations following the recent bond issuance experiment by the European Central Bank (ECB).

“The fact that so many RWAs are launching on Polygon organically is very encouraging… Polygon POS is already second only to Ethereum mainnet in terms of RWA value created.”

However, according to RWA.xyz dataThe claim was exaggerated. The platform showed that Polygon was the fifth largest network by total market capitalization, especially in the U.S. tokenized securities market.

Will RWA interest increase the price of MATIC?

The growing interest in RWA has shown some positive effects on the network, as evidenced by the increase in MATIC daily active addresses, according to Sentiment data.

Source: Santiment

Additionally, the ECB process news update online has turned MATIC’s Weighted Sentiment positive. However, the metric has fallen towards neutral at press time, which may hurt the market sentiment on MATIC.

At the time of writing, the daily active address has also plummeted, which could hinder further price upside as fewer users engage with the altcoin.

MATIC recovery has cooled down

Source: MATIC/USDT, TradingView

On the price front, MATIC jumped 3% on July 19 after Nailwal’s statement. However, MATIC’s overall recovery in July stalled above $0.55 and retraced to $0.51. Mixed reading on key indicators on the price chart signaled caution among traders.

In particular, the RSI (Relative Strength Index) has recovered but remained muted below the average level (50). This means that the recent recovery has not gathered enough buying pressure to ensure a stronger rally.

Additionally, the CMF (Chaikin Money Flow) was above average, yet remained close to the equilibrium level, indicating that inflows have increased but remained stagnant in recent days.

The above readings suggest that MATIC may have difficulty clearing the hurdle above and the daily order block above $0.55 (red).

However, the $0.51 level was also a crucial demand interest level as shown by the chart and the whale order data.

Source: Coinglass

The rebound to $0.51 was marked by about $26 million in buy orders in the derivatives market on Binance exchange. Demand also increased in the MATIC spot market, with over $500K in bids at that level.

Therefore, given the whales’ interest and the huge volume at $0.51, this was a crucial level for any MATIC speculator looking to enter the altcoin market.

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