Crypto Quill

Polygon (MATIC), the layer 2 scaling solution for Ethereum, is showing strong signs of a potential rally in the near future. The on-chain metrics indicate that the network is growing in terms of users, transactions, and value locked. Polygon’s native token, MATIC, has also broken out of a consolidation phase and is eyeing the $1 level as the next target.

Polygon Network Growth Accelerates

One of the key indicators of Polygon’s success is the network growth, which measures the number of new addresses created on the platform. According to data from Glassnode, Polygon’s network growth has surged by over 300% in the past month, reaching a new all-time high of 13,000 new addresses per day. This suggests that more users are joining the Polygon ecosystem and using its services.

Another metric that reflects Polygon’s network activity is the number of transactions. Polygon has processed over 6.5 billion transactions since its inception, with more than 4 billion of them occurring in the last six months. Polygon’s transaction volume has also increased by 50% in the past month, reaching a daily average of 7.5 million transactions. This shows that Polygon is handling a high level of demand and usage on its platform.

Polygon Value Locked Skyrockets

Polygon’s value proposition is to offer fast, cheap, and secure transactions for Ethereum-based applications. This has attracted many developers and users to build and use decentralized applications (DApps) on Polygon, especially in the decentralized finance (DeFi) and non-fungible token (NFT) sectors. As a result, the total value locked (TVL) on Polygon has skyrocketed in the past year, reaching over $10 billion as of February 7, 2024.

According to DeFi Llama, Polygon ranks third among all blockchain platforms in terms of TVL, behind only Ethereum and Binance Smart Chain. Polygon hosts some of the most popular and innovative DeFi and NFT projects, such as Aave, SushiSwap, QuickSwap, Curve, Opensea, Decentraland, and more. Polygon’s TVL growth indicates that more value and liquidity are flowing into its ecosystem, creating a positive feedback loop for its network effect.

MATIC Price Breaks Out of Consolidation

Polygon’s native token, MATIC, is the fuel that powers the network and enables its features. MATIC is used for paying transaction fees, staking, governance, and incentivizing users and developers. MATIC also represents the value of the Polygon network and its potential.

MATIC has been one of the best-performing cryptocurrencies in the past year, delivering over 3,000% returns to its holders. However, MATIC also experienced a period of consolidation and correction in the past few months, as the crypto market faced volatility and uncertainty. MATIC traded in a range between $0.6 and $0.9 for most of the time since October 2023.

However, MATIC has recently broken out of this range and surged above the $0.9 resistance level, signaling a bullish trend reversal. MATIC is now trading at around $0.93 as of February 7, 2024, up by 25% in the past week. MATIC’s next major target is the $1 level, which was last seen in December 2023. If MATIC can break above this psychological barrier, it could trigger a new wave of buying pressure and momentum, pushing MATIC to new highs.

MATIC’s price breakout is supported by strong fundamentals and technicals. MATIC’s on-chain data shows that the network is growing and thriving, with more users, transactions, and value locked. MATIC’s technical indicators also show that the token is in a bullish trend, with the moving averages, the relative strength index (RSI), and the MACD all pointing upwards. MATIC’s market capitalization has also increased by 25% in the past week, reaching over $5.6 billion, making it the 18th largest cryptocurrency by market cap.

Polygon Continues to Innovate and Expand

Polygon is not resting on its laurels, but rather continues to innovate and expand its offerings and reach. Polygon recently announced the launch of Polygon Studios, a new division that aims to bridge the gap between Web 2 and Web 3 gaming. Polygon Studios will provide tools, resources, and funding for game developers and players to create and enjoy blockchain-based games on Polygon.

Polygon also announced the launch of Polygon Hermes, a new zero-knowledge rollup solution that promises to further enhance Polygon’s scalability and security. Polygon Hermes will enable transactions to be verified off-chain using zero-knowledge proofs, reducing the load on the main chain and lowering the gas fees. Polygon Hermes will also support smart contracts and interoperability with other layer 2 solutions.

Polygon’s vision is to become the ultimate platform for Ethereum scaling and infrastructure development, supporting multiple types of applications and solutions. Polygon’s impressive growth and performance in the past year have proven its value and potential in the crypto space. Polygon’s MATIC token is poised to benefit from the network’s success and popularity, as it prepares for a possible mega rally ahead.