- Polygon price has surged by more than 260% from its YTD low.
- It rallied after its adoption by Meta Platform’s Instagram.
Polygon price regained its momentum as its ecosystem growth gained steam. MATIC soared to a high of $1.18, which was the highest level since May this year. It has staged a strong recovery after rising by more than 260% from its lowest level this year.
MATIC regains momentum
Polygon is the biggest layer-2 network in the blockchain industry. It was created to help Ethereum developers supercharge their applications by lowering their fees and boosting their network speeds easily.
Polygon’s suite of products has been growing in the past few months. It owns an Ethereum Virtual Machine (EVM) enabled sidechain, Polygon Supernets, Polygon Avail, Mainnet, Miden, and zkEVM products.
The developers hope that having these tools will make the network more robust for its developers. This is notable since the layer-2 industry is getting competitive, with companies like Loopring and Immutable X gaining market share. Ethereum is also working to supercharge its performance as well.
Polygon price surged this week after Meta Platforms unveiled its plans for the Non-Fungible Token (NFT) industry. Meta. which owns Instagram, Facebook, and WhatsApp, will unveil more NFT solutions in its platform.
Read our review of the best crypto exchanges to buy MATIC.
It hopes to create an ecosystem where people can list their NFTs in platforms like Instagram and find buyers. This is notable since Instagram has millions of users every day. Initially, Instagram will support NFTs in Polygon. It will then expand to other chains like Solana and Flow.
Therefore, MATIC price is rising as investors cheer the Instagram announcement. Still, there are concerns about whether it will have a major impact on MATIC’s demand. Historically, such initial jumps have proven to be temporary. For example, Loopring price shot up after its partnership with GameStop and then declined.
Another concern is that Polygon’s DeFi ecosystem is struggling. Its DeFi ecosystem has seen its total value locked (TVL)crash to just $1.65 billion.
Polygon price prediction
The four-hour chart shows that the MATIC price has been in a strong bullish trend in the past few months. The rally accelerated this month after it surged above the key resistance at $0.9437 and $1. It has moved above all moving averages while the Relative Strength Index (RSI) has moved to the extremely overbought level.
Therefore, while the overall trend is bullish, I suspect that Polygon price will pull back slightly in the near term. If this happens, the next reference level to watch will be at $1, which is about 13% below the current level. A drop below $1 will see it fall to $0.9437 next.
