Polygon (MATIC) Founder Sandeep Nailwal Acknowledges Rising RWA Interest in the Ethereum (ETH) L2 Network

Polygon [MATIC] founder Sandeep Nailwal has acknowledged rising Real World Asset (RWA) interest in the Ethereum [ETH] L2 network.

Polygon [MATIC] founder Sandeep Nailwal highlighted the growing interest in Real World Assets (RWAs) on the Ethereum [ETH] L2 network. This follows the European Central Bank’s (ECB) recent trial for bond issuance on the network.

“Seeing so many RWA’s launching on Polygon organically is very encouraging…Polygon POS is already no.2 to Ethereum mainnet in terms of the RWA value created.”

However, according to data from RWA.xyz, Nailwal’s statement may be overstated. The platform showed that Polygon was the fifth-largest network in terms of total market cap, especially within the US tokenized securities market.

Could RWA interest boost MATIC price?

The growing RWA interest did show some positive network effects, as highlighted by a rise in MATIC’s daily active addresses, according to data from Sentiment.

Furthermore, the network update on the ECB trial did push MATIC’s Weighted Sentiment into the positive territory. However, the metric dropped towards the neutral level at press time, an aspect that could hamper market sentiment on MATIC.

At press time, the daily active address also took a downturn, an aspect that could hinder further price upside with fewer users engaging with the altcoin.

MATIC recovery stalls

Notably, RSI (Relative Strength Index) recovered but remained muted below the average level (50). This showed that the recent recovery failed to gather sufficient buying pressure to ensure a stronger upside.

Moreover, CMF (Chaikin Money Flow) was above average but hovered around the equilibrium level, denoting that inflows surged but stalled over the last few days.

The above readings suggested that MATIC could face difficulties in breaking the overhead hurdle and daily order block at $0.55 (red).

However, the $0.51 level also showed to be a crucial demand interest level, as highlighted by the chart and whale order data.

From the chart and whale order data, the bounce at $0.51 was marked by around $26 million in buy orders on the derivatives market at Binance exchange.

Furthermore, demand was high in the MATIC spot market, with over $500K in bids at the level.

Thus, given the whale interest and high volume at $0.51, it served as a crucial level for any MATIC speculator considering market entry into the altcoin.

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