About Polygon (MATIC)
Polygon (MATIC) is a leading layer two scaling solution built on the Ethereum (ETH) network. With a fully diluted valuation (FDV) of about $8.6 billion and a daily average trading volume of around $280 million, Polygon is poised for significant growth amid the mainstream adoption of web3 protocols and smart contracts. Despite its current market position, the mid-cap altcoin is still in the early stages of the macro bull cycle.
Why Bet on Polygon Win this Bull Cycle
Following the recent Ethereum’s Dencun upgrade, the Polygon network, like other L2 solutions, has experienced increased on-chain activity thanks to a notable reduction in transaction fees. Market data from defillama shows that the Polygon network boasts a total value locked (TVL) of about $1 billion and has collected fees of around $111k from a 24-hour trading volume of approximately $112 million on its web3 protocols. With over $9.9 billion in bridged TVL, Polygon stands to benefit significantly from the growing adoption of Ethereum’s web3 ecosystem, largely driven by institutional investors.
Midterm MATIC Price Forecast
Despite opening April on a bearish note amidst the ongoing crypto correction led by Bitcoin, MATIC price has consistently closed above the 50-month Moving Average (MA) as the Relative Strength Index (RSI) retests the 50 level. According to a MATIC price analysis by Ali Martinez, the altcoin is poised to rebound in the near term following a buy signal in the daily time frame indicated by the TD sequential indicator. Martinez has issued a midterm price target for MATIC ranging between 95 cents and $1.
Moreover, MATIC price has been forming higher highs and higher lows on the weekly time frame since the bullish breakout late last year.
Conclusion
In conclusion, Polygon (MATIC) appears to be on the verge of a major uptrend, driven by its fundamental strengths as a layer two scaling solution, increased on-chain activity, and favorable price analysis. Investors looking to capitalize on the potential growth of the Ethereum ecosystem may find Polygon to be a promising investment opportunity in the current market landscape.
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