The cryptocurrency market went bearish last week. Most cryptocurrencies lost 7% on average and hit the lowest prices. Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization, reached $ 20,000 and $ 1,500 respectively. However, the prices of Polygon MATIC have increased by around 3% over the same time period. There are many reasons for this price action. Why has the price of MATIC increased? Where will the MATIC price reach? Let’s analyze in this article on MATIC price prediction.
What is the MATIC polygon?
Polygon is a scaling solution for the Ethereum network. The Ethereum blockchain was the first network to introduce smart contracts, making Ethereum a leader in decentralized applications to date. However, Ethereum has struggled to keep transactions fast and efficient as the number of smart contracts has increased. This is how the Polygon network was born.
Polygon is a level 2 solution where a second level and numerous sidechains download the Ethereum blockchain. Particularly important are the so-called “plasma chains” of Polygon. These Ethereum sidechains download blockchain smart contracts. Decentralized application developers can outsource their dApps and smart contracts to the Polygon network as needed. This solves Ethereum’s scaling problems.
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Why is the MATIC price HIGH?
The sentiment in the cryptocurrency market is currently bearish. While most cryptocurrencies have lost value in the past week, MATIC’s prices have risen. In fact, there are many fundamental supports that are driving up the prices of MATIC.
The new Polygon Testnet goes LIVE
Polygon has just announced the official launch of its new tesnet called Avail. Basically it gets better data availability on the blockchain. The need for monolithic blockchain systems to combine data execution, settlement and availability in a single block is a key drawback. Level 2 rollups, which allow execution on a separate chain with blocks dedicated to execution, enable modular blockchain movement. Polygon Avail promotes modular architecture by decoupling data availability and creating a chain with blocks designed for data availability.
OpenSea supports MATIC payments
After reviewing the effects of Seaport for several months and getting helpful feedback, OpenSea announces that it has added Polygon support. In the coming months, it plans to expand support for Klaytn and other EVM-compatible chains. Previously, Polygon on OpenSea was powered by the 0x protocol. Polygon moved to Seaport. According to OpenSea, this will accelerate the rollout of new features across all EVM-compatible chains. As a result of this change, OpenSea now accepts MATIC, Polygon’s native token, as a form of payment. Users who trade on Polygon will now have to pay gas costs to use MATIC to transact on OpenSea.
RobinHood supports MATIC deposits and withdrawals
In addition to the Ethereum network, Robinhood trading software has just revealed that its users can now transfer and receive MATIC tokens on the Polygon network. Traders and investors have the ability to lend, borrow and trade MATIC for other tokens while providing liquidity on the proof chain. According to the startup, support for new networks and additional cryptocurrencies is on the way.
MATIC Price Prediction – Will MATIC reach $ 1 again?
With all the positive fundamental news mentioned above, MATIC should easily hit its previous high of $ 1. MATIC previously retraced from that level to return to the $ 0.75 price. However, if we look at Figure 1 below, we can see how MATIC’s prices are trending slightly upwards to return to that psychological price of $ 1.
The rise in prices, however, is slow, and this is due to the negative sentiment in the cryptocurrency market. The latter is bearish, as many analysts predict an imminent cryptocurrency crash. If so, MATIC may not be able to sustain and prices may drop below $ 0.75. For now, the $ 1 price remains an active target.