Polygon (MATIC) shoots more than 60% in a week, what’s behind the move?

graph g6f7e19942 1280 1200x600 1
  • Polygon Network’s address activity has picked up rapidly which has provided a strong boost to the MATCI price.
  • Polygon co-founder Mihailo Bjelic has put suspense stating that they will be announcing the most-important reveal of 2022 in 3 days.

Ethereum’s Layer-2 scalability platform Polygon has been on a roll. Polygon’s native cryptocurrency MATIC has been the top performer in the altcoin space rallying more than 60 percent over the last week.

As of press time, MATIC is trading 15 percent up at a price of $0.90 and eyeing an immediate target of $1.0. With the recent price pump, MATIC has also extended its monthly gains close to 150 percent.

The MATIC price skyrocketed as Disney picked Polygon for its Accelerator Program last month. The program will focus on augmented reality (AR), artificial intelligence (AI) characters, and non-fungible tokens (NFTs). However, the role of Polygon isn’t clear for now as Disney will provide further guidance in the future. But the news itself seemed to have brought greater cheer to investors.

Read More: Polygon becomes only selected blockchain to participate in 2022 Disney Accelerator Program

On-chain data provider Santiment noted that Polygon’s address activity has been picking up quite rapidly recently. It added:

Altcoins spent the first half of 2022 seeing market cap gains being flushed rapidly. However, projects like $MATIC have made up for some of its losses quickly, jumping +63% in a week. Address activity is also rising, showing an intriguing divergence.

Polygon MATIC Address Activity scaled

Courtesy: Santiment

Optimism surrounding Polygon (MATIC)

Ethereum’s Layer-2 scalability solution has been working on some key developments recently. While MATIC faced the heat of the crypto market meltdown last quarter, it has also bounced back quickly. Furthermore, market analysts have been projecting optimistic forecasts for MATIC which has led to greater investor confidence.

As a result, MATIC is riding the strongest wave among other altcoins during this market recovery. On the other hand, Polygon has been capitalizing on some of the recent events in the market.

The collapse of the Terra ecosystem left several good-quality projects in a state of uncertainty. This is where Polygon unveiled a new fund to help Terra-based projects migrate on the Polygon blockchain network. So far more than 48 Terra projects have successfully migrated to the Polygon blockchain network.

On the other hand, the number of decentralized finance (DeFi) protocols on Polygon is also increasing. As a result, the demand for MATIC tokens is simultaneously increasing. The total value locked (TVL) across all DeFi protocols on Polygon currently stands at $1.76 billion.

On the other hand, Polygon is likely to announce its most important release in three days. In his recent Twitter post, Polygon co-founder Mihailo Bjelic wrote:

When we started @0xPolygon, the Ethereum community embraced us. That empowered us to onboard 30k apps and 150M users and become a giant among scaling efforts and alt L1s. We made a promise to stay committed and give back to Ethereum. In 3 days, we are delivering on that.