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Crypto insights platform Santiment believes that one of 2021s top altcoins could be reigniting its boom cycle.

In a new tweet, Santiment tells its 70,700 followers that layer 2 Ethereum-scaling solution Polygon (MATIC) is starting to flash bullish signals after the meltdown in May that saw its price collapse over 70% from the all-time high of $2.62.

MATIC is showing signs of a potential reversal, according to our data. The popular ETH-based altcoin is hanging on above support for now, and supply on exchanges is encouragingly dropping.

Despite the recent crash, Santiment unveils that Polygons on-chain activity continues to grow on a monthly basis.

MATICs daily active addresses is showing really healthy signs of growth over the past few months and is still remaining consistent this month. Itll be hard to ignore the bullish case for MATIC if the growth continues.

The daily active addresses is an on-chain metric that shows the daily number of unique addresses that were active on the network as a sender or receiver.

Santiment adds that Polygons supply on exchanges has significantly fallen after last months brutal sell-off.

During the recent crypto meltdown, MATICs supply on exchanges saw a consistent rise that acted as sell pressure. Since then, it has gradually declined to almost where it bounced off.

This is encouraging but its still too early to tell whether therell be more to come as MATICs price finds its direction.

However, not all on-chain data support a bullish bias, according to Santiment. The crypto analytics firm notes that the daily active deposits metric, which shows the total number of all incoming and outcoming transactions involving deposit addresses (like an exchange wallet) on a particular day, is still on the up and up.

On-chain data is still showing a good amount of sell pressure as each rally saw spikes in daily active deposits as well. This suggests that a good amount of people are using any pump to exit their positions.

Featured Image: Shutterstock/camilkuo

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This Highly Resilient Altcoin Flashing Signs of Bullish Reversal, Says Crypto Analytics Firm Santiment - The Daily Hodl