MATIC Coin Staking Reduced by 35% After 27% Price Drop, What’s Next?

The digital currency MATIC (MATIC) has lost significant market capitalization in recent months. But that’s not all, as current data shows that things are not looking good in the staking ecosystem either. Is this due to a drop in investor confidence in this token?

Staking Reduction

Polygoninans, a popular account on X (formerly Twitter) that shares updates on the Polygon ecosystem, recently tweeted the following:

The state of the staking ecosystem highlights this blockchain. According to this tweet, total stakes this week reached 3.4 billion, down 35% from the previous week.

AMBCrypto looked at data from the Sating Rewards platform to better understand the status of S TakingMatic. According to the survey, the number of stacked Matics increased until July 3, but the numbers have since declined, indicating a decline in investor interest.

Are Investors Not Trusting Matik?

Data from CoinMarketCap showed that the Matic staking price has dropped by over 27%.

At the time of writing, Matic is trading at $0.4035 and has a market cap of over $4 billion. This makes Matic the 22nd largest cryptocurrency. Furthermore, due to the sharp price drop, only 2% of Matic investors are now making profits.

AMBCrypto then analyzed Matic’s on-chain data to better understand investor sentiment towards the token. According to our analysis, the weighted sentiment for this altcoin was in negative territory.

This means that bearish sentiment around this token is prevalent in the market. After a sharp rise, Matic’s social volume also dropped, indicating a drop in popularity.

But a closer look reveals a different story. Over the past 30 days, Matic’s supply on exchanges has slightly decreased.

Meanwhile, the over-the-counter supply has been increasing. This shows that some investors are considering taking Matic back.

The supply in the hands of large addresses has also increased slightly, indicating that whale pressure is exerting on the altcoin. Generally speaking, this also means that some expect the price of Matic to rise in the coming days.

Therefore, AMB Crypto checked the daily chart of the coin to see what the market indicators were showing. The MACD technical indicator showed a bullish crossover. The Chaikin Money Flow (CMF) index also saw an increase and was heading towards the neutral mark at the time of writing.

Both indicators showed that Matic is likely to see a rise on the charts.

However, it may take more time for the trend to turn into an uptrend as the Relative Strength Index (RSI) has also been moving sideways.