Polygon zooms 270% in the four months. What’s fueling the rally?

Synopsis

MATIC, worth more than $1.2 billion, exchanged hands in the last 24 hours, with volumes surging about 50% in the last 24 hours, suggests data . Polygon, the 11th largest crypto asset, was commanding a market cap of over $10.45 billion.

Polygon’s native token, MATIC, has been on a wild swing recently. The crypto token co-founded by Sandeep Nailwal and Jaynti Kanani has been buzzing amid a crypto winter on the back of positive new flows.

In about the last four days, the token has zoomed around 50%, registering another 9% rally during the day. Token hit $1.24 levels by 3 pm on Monday before giving up some gains, the data from coinmarketcap suggested.

MATIC, worth more than $1.2 billion, exchanged hands in the last 24 hours, with volumes surging about 50% in the last 24 hours, suggests data . Polygon, the 11th largest crypto asset, was commanding a market cap of over $10.45 billion.

Polygon has risen as much as 270% since its June 2022 lows but is still more than 50% below its all-time high of $2.7 it scaled in December 2021.

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View Details »Vikram Subburaj, CEO of Giottus Crypto Platform, said that the rally is indicative of the fact that investors are ready to put money in projects with strong fundamentals despite a slowdown.

“The rally is fuelled by the fact that Polygon is the strongest business development project in recent months, having partnered with Reddit, Starbucks, Instagram, and other platforms,” he added.

The latest leg of the rally can be Meta’s announcement as the Web2 giant has decided to launch a toolkit allowing users of the social media platform Instagram to mint and sell Polygon-powered non-fungible tokens (NFT) or digital collectibles.

Polygon is the first partner that Meta has chosen for the new feature. Furthermore, investment banking giant JPMorgan successfully executed its first decentralized finance trade over Polygon.

Tarusha Mittal, COO and Cofounder, UniFarm, said that the exact price movement would depend on macroeconomic factors surrounding the financial markets, and it seems evident that a partnership with Meta will drive momentum for it.

“Meta has chosen the Polygon network to enable its users to mint, showcase, and
sell digital art collectibles, and looking at the size of the audience, this offers massive growth to the Polygon and its native token MATIC,” she said.

Polygon’s rally since then suggests that despite lingering concerns about the global economy, investors are ready to snap up coins with positive fundamental developments that promise increased use cases.

Analysts are impressed by Matic’s rally in the bear market, which shows investors are ready to bet on the tokens with a good team, strong fundamentals, and the potential for mass use cases.

“At this juncture, adoption is happening in spite of macroeconomic headwinds in the market. MATIC is fundamentally a strong project with a solid use case. The token will attain new highs when the markets turn bullish, said Subburaj.

“MATIC is a solid project to invest in as a part of a crypto portfolio. Investors should continue to accumulate MATIC through this year for long-term gains,” he added with advice to average the cost on dips.

MATIC is a strong contender for long-term investment depending on the risk appetite of investors, said Mittal. “Meta has pledged zero commission from creators till 2024, which will further boost the adoption of the Polygon network across Meta platforms.”

Source

Updated: 11/07/2022 — 09:00