The Polygon price has held relatively well recently even as other cryptocurrencies have retreated. MATIC, its native token, is trading at $2.40, which is about 26% above the lowest level in December. It is about 18% below its highest level in December.
Polygon is the biggest layer 2 network
Ethereum is a leading blockchain platform that enables developers to build decentralized applications. It is used to build some of the best-known platforms like Shiba Inu, Decentraland, Uniswap, and Aave.
However, Ethereum has its challenges, which its developers are working to fix. For example, it is a relatively slow project and users always complain about its high speeds. It is not uncommon to see an average transaction cost more than $50.
Layer 2 networks are software that help to scale the performance of Ethereum applications. They help to speed them and ensure that they are fast and less expensive.
Polygon is the biggest layer 2 network for Ethereum. MATIC, its native coin has a market capitalization of over $16.7 billion. Other popular layer 2 networks are Immutable X, Harmony, and Loopring.
The MATIC price has done well in the past few months as the number of blockchain projects using the network has jumped. According to DeFi Llama, there are now about 173 apps using the network. Some of the most popular apps in the network are Aave, Uniswap, and Curve, among others. They all have a total value locked (TVL) of more than $5.52 billion, making it the 7th biggest network in the world.
Recently, the Polygon price has jumped sharply after the network launched its zero-knowledge (zk) version. The developers launched Plonky2, a major milestone in zk cryptography. It is about 100 times faster than other networks. So, what next for the MATIC price?
Polygon price prediction
The four-hour chart shows that the MATIC price has been attempting to rebound lately. It has risen by about 25% from its December low and is a few points below its all-time high. The network has moved above the 25-day and 50-day moving averages and is attempting to move above the resistance level at $2.4592.
Therefore, at this point, the overall outlook of the coin is bullish. But buyers will need to move above the key resistance at $2.4592. If this happens, the next key resistance level to watch will be the last December’s high of $2.92.
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