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Polygon (MATIC) jumps 5% in 24 hours despite crypto market in a sea of red; Here’s why

Polygon (MATIC) jumps 5% in 24 hours despite crypto market in a sea of red; Here's why
Paul L.

Polygon (MATIC) is among the beneficiaries of the recent relief rally across the general cryptocurrency market. However, MATIC is witnessing a sustained spike in popularity despite the majority of the crypto market mainly trading in the red zone. 

Indeed, by press time on November 7, MATIC was trading at $1.20, with gains of almost 5% in the last 24 hours. On the weekly chart, the token has surged by over 30%, emerging as the biggest gainer among the top 100 cryptocurrencies by market capitalization, according to CoinMarketCap data retrieved by Finbold.

Top 100 leading cryptocurrencies by gains. Source: CoinMarketCap

Furthermore, the 11th-ranked cryptocurrency by market cap has experienced a spike in buying pressure to record a weekly capital inflow of about $2.43 billion. 

MATIC 7-day price chart. Source: CoinMarketCap

Crypto community bearish on MATIC 

Additionally, despite the gains, the Polygon community appears to be bearish in the long term regarding MATIC’s value. As reported by Finbold, a CoinMarketCap community projected that MATIC would trade at a median price of $0.9025 on November 30, 2022. 

Although several altcoins have gained in recent days, MATIC’s market performance is mainly due to a surge in network activity, with institutions increasingly incorporating the Ethereum (ETH) sidechain in their systems. 

For instance, social media giant Meta (NASDAQ: FB) recently opted to unveil a toolkit enabling Instagram users to mint and sell Polygon-powered non-fungible tokens (NFT). 

At the same time, banking giant JP Morgan revealed that it had successfully completed its first-ever cross-border transaction using decentralized finance (DeFi) on the layer-2 network Polygon blockchain. 

Besides Meta and JPMorgan (NYSE: JPM), various mainstream firms have selected the Polygon blockchain for different power operations. For instance, Coca-Cola (NYSE: KO), Reddit, DraftKings, Quadrata, and Starbucks (NASDAQ: SBUX) unveiled their NFTs on the network.

What next for MATIC?

Amid the weakening global economy characterized by high inflation and interest rates, MATIC’s performance indicates that investors increasingly prefer assets with positive fundamental developments likely to result in mass adoption. 

Interestingly, the focus on MATIC also follows a recent commitment by the network’s founder to elevate the token to the levels of Bitcoin (BTC) and Ethereum. According to Polygon co-founder Sandeep Nailwal, he believes the token should rank among the top three cryptocurrencies. 

With Polygon recording an uptick in value accompanied by institutional adoption, only time will tell if the asset can sustain the level, especially with ongoing macro risks. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

 

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