The crypto market turned bearish in the past week. Most cryptos lost on average 7% and reached their bottom prices. Bitcoin and Ethereum, the two biggest cryptocurrencies by market cap reached $20,000 and $1,500 respectively. However, Polygon MATIC prices are up by around 3% during that same timeframe. There are many reasons for this price action. Why is MATIC price up? Where will MATIC price reach? Let’s analyze in this MATIC price prediction article.
What is Polygon MATIC?
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 this day. However, Ethereum has struggled to keep transactions fast and efficient as the number of smart contracts has increased. This is how the Polygon network came about.
Polygon is a layer 2 solution in which a second level and numerous sidechains offload the Ethereum blockchain. The so-called “plasma chains” from Polygon are particularly important. These Ethereum sidechains offload the blockchain’s smart contracts. Developers of decentralized applications can outsource their dApps and smart contracts to the Polygon network if required. This solves Ethereum’s scaling problems.
Why is MATIC Price UP?
The crypto market sentiment is currently bearish. While most cryptocurrencies lost value in the past week, MATIC prices increased. In fact, there are many fundamental backings that are driving MATIC prices higher.
Polygon new Testnet goes LIVE
Polygon just announced the official launch of its new tesnet called Avail. It basically improves data availability on the blockchain. Monolithic blockchain systems’ necessity to combine execution, settlement and data availability in a single block is a fundamental drawback. Layer 2 rollups, which allow the execution to happen on a separate chain with blocks devoted to execution, allow 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 examining Seaport’s effects for several months and gaining useful feedback, OpenSea announces that it has now 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 has relocated to Seaport. According to OpenSea, this will speed up the deployment of new features to all chains that are EVM-compatible. As a result of this change, OpenSea now accepts MATIC, Polygon’s native token, as a form of payment. Users who deal on Polygon will now need to pay gas costs in order to use MATIC to transact on OpenSea.
Starting today, we will begin using Seaport for all new listings and offers on Polygon! We’re excited to start using Seaport across multiple blockchains to improve the experience for everyone on OpenSea.
Here’s what you can expect with this move to Seaport ↯
RobinHood supports MATIC Deposits and Withdrawals
In addition to the Ethereum network, the trading software Robinhood just revealed that its users may 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 also supplying liquidity on the proof-of-stake chain. According to the startup, support for new networks and additional cryptocurrencies are on the way.
Hey! You can now send and receive MATIC on the @0xPolygon network in addition to the @ethereum network. Support for more cryptocurrencies on more networks coming soon.
MATIC Price Prediction – Will MATIC reach 1 $ again?
With all the above-mentioned positive fundamental news, MATIC should easily reach its previous high of 1$. MATIC did retrace earlier from that level to adjust back to the $0.75 price mark. However, if we look at figure 1 below, we can see how MATIC prices are on a slight uptrend to reach back to that psychological price of $1.
The price increase however is slow, and this is due to the negative sentiment in the crypto market. The latter is bearish, as many analysts predict an upcoming crypto crash. If this happens, MATIC might not be able to sustain and prices might fall back below $0.75. For now, the 1$ price mark remains an active target.
