Polygon (MATIC) is closing in on Polkadot (DOT) in terms of market capitalization, driven by increasing interest and positive sentiment. Analysis of price, circulating supply, and social sentiment indicates a potential flip in the near future.

Polygon [MATIC], which currently holds the 14th spot among cryptocurrencies by market capitalization, was on the verge of surpassing Polkadot [DOT] as per the latest data.

Reports from CoinMarketCap indicated that Polygon boasted a market cap of $9.17 billion, while Polkadot's market cap stood slightly higher at $9.39 billion.

This divergence in market caps didn't arise out of thin air but rather reflects the growing interest in MATIC, potentially posing a challenge to DOT.

The market capitalization of a cryptocurrency is influenced by both its price and circulating supply, making it crucial to evaluate these aspects.

At the time of reporting, DOT was priced at $7.32, whereas MATIC was trading at $0.95. Both tokens have witnessed substantial upticks in value over the past few weeks.

Over the last month, MATIC has surged by 26.13%, whereas DOT has seen an 11.25% increase.

These performance differences suggest a potentially higher demand for MATIC compared to DOT. Additionally, recent analysis by AMBCrypto pointed out bullish indicators for Polygon's native token.

If these signals materialize, there's a strong likelihood of MATIC's market cap surpassing that of DOT. Nonetheless, this doesn't imply stagnation for Polkadot.

Polkadot has consistently demonstrated excellence in development activity, instilling confidence in the project's future.

However, this development prowess hasn't always translated into favorable price actions. An examination of the Weighted Sentiment by AMBCrypto revealed significant disparities between the two projects.

MATIC's Weighted Sentiment stood at 0.64, whereas DOT's was in the negative territory at -0.37.

This metric assesses the social sentiment surrounding a cryptocurrency, distinguishing between positive and negative market sentiments.

It appears that the majority of market participants harbor a bullish outlook on MATIC, while the sentiment is reversed for DOT. Bullish sentiment often translates into buying pressure, potentially driving prices higher.

Conversely, bearish sentiment could lead to a stalemate or price decline.

If this trend persists, DOT might face downward pressure while MATIC continues its ascent, possibly overtaking DOT. Another factor that could contribute to Polygon flipping Polkadot is the total number of token holders.

Over the past month, AMBCrypto observed a rise in MATIC holders from 64.51 million to 68.91 million.

This increase signifies bullish sentiment among many investors regarding MATIC's long-term prospects. Moreover, the number of active addresses surged to 421,000 as of February 20th.

This uptick indicates robust blockchain usage, which further bolsters bullish sentiment.

However, current data shows a decline in active addresses on the Polygon network. Moving forward, DOT may need to remain vigilant as MATIC continues to gain momentum.

If demand for DOT picks up, it might retain its 13th position. Otherwise, a potential swap in rankings between the two projects could be in the cards.