- Polygon (MATIC) price has rallied more than 28 percent in the past month with the bulls flexing on the higher ground.
- The Polygon network has attracted notable attention from different web3 protocols and DeFi platforms seeking to scale securely to individual and institutional investors.
Polygon (MATIC), a top-tier Layer-Two (L2) Ethereum-based scaling solution, has begun feeling the impact of the Bitcoin (BTC) adoption by institutional investors. The mid-cap altcoin, with a fully diluted valuation of $9.69 billion and an average daily trading volume of around $508 million, has gained approximately 28 percent in the past two weeks to trade at 97 cents on Tuesday.
The Polygon bullish outlook could easily continue in the coming months bolstered by the heightened Ethereum (ETH) demand from institutional investors. Furthermore, a weekly report from CoinShares shows that the crypto investment products have attracted around $5.2 billion year-to-date, led by Bitcoin due to the approval of spot BTC ETFs in the United States earlier last month.
Polygon Price Aims for ATH Soon
Polygon (MATIC), which has already initiated the transition process to POL token, has been on a rising trend since October last year. Notably, MATIC’s price has been consolidating between 72 cents and $1 since November last year. However, the utility-based altcoin has gobbled more buyers throughout the macro consolidation period.
From a technical perspective, MATIC’s price has already broken out of a macro-falling logarithmic trend that began after the 2021 bull rally. As a result, MATIC is now aiming for the next target around $1.55, which is the only next major hurdle to reclaiming its all-time high (ATH). Moreover, the weekly Relative Strength Index (RSI) has strongly rebounded from the 50 level and now it is headed from the 70 level, which signals the onset of a parabolic rally.
Meanwhile, it is worth noting that the supply of MATIC in circulation has declined gradually amid the rising prices. According to market intelligence platform Santiment, a sharp decline in circulating supply is a positive fundamental as it means the selling pressure has declined in tandem.
Why Bet on MATIC/POL Win
The rise of the Polygon network to a top-tier Ethereum scaling solution, with around $978 million in Total Value Locked (TVL) and more than $1.44 billion in stablecoins market cap, has come at a cost to the investors and the core developers. Throughout the 2022/2023 crypto winter when several web3-related firms collapsed, the Polygon core team of developers continued to build the necessary infrastructure to onboard more users to increase volume and liquidity.
Furthermore, the Polygon faces significant competition from other Ethereum-based scaling solutions like Arbitrum (ARB), and Optimism (OP). As of this publication, the Arbitrum network had a TVL of about $3 billion and a stablecoins market cap of around $2.2 billion. On the other hand, the Optimism network has a TVL of around $884 million and a stablecoins market cap of approximately $632 million.
The Polygon network has therefore become a magnet for different multichain web3 protocols and decentralized financial (DeFi) seeking to scale to global markets. Some of the recent and notable integrations with the Polygon PoS network include Rex protocol, Uphold Inc., and Curve Finance, among many others.
