Polygon [MATIC] Holders Face Challenges as Napoli Update Approaches
Polygon [MATIC] holders have been facing difficulties recently, with less than 45% of holders making profits, according to data from IntoTheBlock. The token has erased a large chunk of its recent gains, causing pain to many investors. Surprisingly, 50% of MATIC holders were lost, while only 44% managed to make profits and 6% reached a break-even point.
Just a few weeks ago, Polygon showed potential to reach $2, but the recent decline in price has seen it struggle to surpass the psychological resistance of $1. Currently valued at $0.99, MATIC has decreased by 4.44% in the last seven days.
However, all hope is not lost for MATIC holders as the upcoming Napoli update could potentially drive a surge in buying activity. The update aims to improve network consensus by integrating enhancements for parallel execution and new operating codes for the Ethereum Virtual Machine (EVM). With this news, MATIC price could potentially rise to $1.30 as the update approaches.
Despite the potential for growth, Polygon still faces challenges with its Total Value Locked (TVL), which has decreased significantly from its peak in 2021. The TVL currently stands at $1.07 billion, signaling a decline in liquidity locked in the protocol.
While the metric has seen a small increase in deposits over the last 30 days, it remains to be seen how this will impact the price of MATIC. Ultimately, the value of MATIC could increase regardless of the health status of the network.
In the midst of these challenges, the upcoming Napoli update could be a bullish signal for MATIC holders, offering hope for a potential price increase in the near future.