Key Reasons Why Polygon (MATIC) Price Might Skyrocket
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What is MATIC?
MATIC is the native token of Polygon, a blockchain platform that aims to create a multi-chain system compatible with Ethereum. Polygon supports decentralized applications (dApps) like DeFi, DAOs and NFTs.
Originally launched as Matic Network in 2017, it rebranded to Polygon in February 2021 to expand from a single Layer 2 scaling solution to a comprehensive platform integrating multiple Layer 2 solutions and standalone blockchains. Polygon uses a proof-of-stake consensus mechanism, similar to Ethereum, and the MATIC token is ERC-20 compatible. Polygon Labs operates it.
MATIC price history
MATIC reached a peak of $2.92 in December 2021 but has since declined to $0.71 as of June 7, a nearly 76% drop. This decline is notable given the recent bullish trends in the broader crypto market.
Over the past two months, MATIC has consistently traded below the EMA 100, indicating a bearish trend. The last significant attempt to break above the EMA 100 was on April 9. A breakout could see the price ascend to higher resistance levels, including the 0.5 Fibonacci level between $0.78 and $0.80.
Potential rally in June
MATIC is considered a "sleeping giant" by holders who see strong growth potential. Many users stake their tokens to earn passive income, with staking yields around 3%. Polygon's recent Napoli upgrade aims to enhance scalability and performance, which could positively impact MATIC's price.
The MVRV ratio, using a 365-day moving average, has shown a buy signal with a value of -12.58%. This ratio compares MATIC’s current market price to the average acquisition price of all tokens.
According to the "State of Polygon Q1 2024" report by Messari, Polygon's gaming activity surged in Q1, 2024, with daily gaming addresses increasing by 1,615% to 207,000 and daily gaming transactions rising by 469% to 734,000, driven mainly by MATR1X FIRE.
Key developments in Polygon's gaming ecosystem include the launch of the $100 million Inevitable Games Fund by Immutable, King River Capital and Polygon Labs, and Square Enix's collaboration with Animoca Brands for the NFT game Symbiogenesis.
Tomiwabold OlajideOther growth metrics include:
- Polygon's stablecoin market value increased to $1.5 billion, a 19% quarterly rise, with USDT leading at $792 million.
- DeFi daily active addresses increased by 67% quarter over quarter to 50,000.
Although NFTs and social activities saw less growth, they also experienced increased activity.
Source: Token Terminal
Overall, these developments indicate strong performance for Polygon in the upcoming months, though the exact scale and longevity of a potential rally remain uncertain.
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