Polygon price is still moving upward and is comfortably above the $1.20 mark as it continues its ascent toward $2. According to data from CoinMarketCap, the leading Layer-2 blockchain has gained an impressive 67% since the start of the year as the crypto market continues to recover from the extended bearish period of 2022.
Polygon’s growth has been attributed to solid fundamentals, and its native token, MATIC, could surpass $1.50 in February due to a few factors.
Polygon Spurred By DeFi Growth
Polygon has performed well in the DeFi sector in the past with its unique infrastructure and low transaction fees attracting new and established platforms to its ecosystem. The latest platform to join this trend is Dopex finance. Polygon announced on February 4 that the decentralized options protocol had launched on its blockchain.
It further stated that this was a step forward for Dopex as it would reach a wider user base and provide opportunities for traders to take advantage of its novel features. Following the announcement, MATIC’s price responded positively, and its daily and weekly charts are in the green zone.
Related reading: MATIC Gains Over 20% As Polygon Network Records Biggest Whale Transaction Of 2023
This development comes after the Polygon team completed a hard fork on its blockchain network. According to Polygon the hard fork would significantly reduce price fluctuations on its network while following the gas mechanisms of Ethereum. It would also ensure that gas fees remain relatively lower during peak periods on its network.
MATIC’s price surge could have been a significant factor in the token’s popularity among crypto whales. According to data from the crypto tracking platform WhaleStats, MATIC surpassed Shiba Inu (SHIB) to become the most-traded token from Ethereum (ETH) whales.
In addition, data from DeFiLlama reveals that the Total Value Locked (TVL) on Polygon has increased since the turn of the year to $1.2 billion. Furthermore, the token is among the most discussed on social media, and its daily on-chain transaction volume has also increased.
Polygon Price Shows Strong Fundamentals
Presently, there are positive sentiments regarding the current upward movement of MATIC, and the digital asset is showing solid fundamentals that indicate further price growth. The token is trading well above what was expected this week by several analysts.
Related reading: The Crypto Dream Team: Binance Coin (BNB), Polygon (MATIC), and Orbeon Protocol (ORBN)
MATIC has established support above the $1 mark, which means that the bulls are in control, and we could see further consolidation in the coming days. The current resistance level is $1.50, and if the trading volumes continue to rise, we could have a price closer to $2.
Despite these positive indicators, the market is still fickle, and there’s a slim chance that there could be a pullback before the next price surge. MATIC is currently trading at $1.21 at the time of writing. It is down 2.5% in the last 24 hours but has gained 6% in the past week.
Featured image from Capital.com, chart from Tradingview.com