The MATIC price rebounded on Friday as the cryptocurrency industry staged a major rally. Polygon is trading at $1.5200, which is about 27% above the lowest level on Thursday. The rally brings its total market capitalization to more than $8.46 billion, making it the 23rd biggest cryptocurrency in the world.
Polygon price rebounds
Polygon is a fast-growing level-2 blockchain project that was designed to help solve some of the challenges in Ethereum’s blockchain. Developers use the network to accelerate their Ethereum blockchain projects. This is important because Ethereum is widely known for its congestion, slow speed, and higher costs.
Polygon has gained substantial traction in the past few months. Already, it hosts more than 1,200 decentralized applications (DAPPs). It also hosts more than 80 DeFi projects like Aave, Curve, QuickSwap, and Balancer.
According to DeFi Llama, these applications have a total value locked (TVL) of more than $4.65 billion. At their peak, they had a TVL of more than $10.5 billion.
Still, transactions in Polygon’s platform have been falling lately. Data by Polyscan shows that the number of transactions on Thursday this week were more than 3.1 million. This is substantially lower than the 6.3 million transactions it processed on September 30th. This trend could continue after Polygon raised the gas fees to 30 gwei in a bid to reduce spam.
At the same time, the Polygon team believes that Non-Fungible Tokens (NFTs) will be a key driver for its ecosystem. It recently launched Polygon Studios that will be tasked to growing this network. In a statement, the developers said that they already have more than 100k gamers in its ecosystems.
MATIC price prediction
The daily chart shows that the MATIC price has been in a tight range in the past few days. During this period, the token has remained between the key support and resistance levels at $0.6295 and $2.6900.
The coin managed to rebound today as interest in cryptocurrencies rebounded. This helped to push the prices of key currencies like Bitcoin and Ethereum substantially higher. The total market cap of all cryptocurrencies rose to more than $2.46 trillion.
The Polygon price also rose above the 25-day and 50-day moving averages. Therefore, while the 20% rebound is a positive thing, it is not yet a bullish breakout. For this to happen, the price will need to move above the key resistance level at $0.7868.
