The Polygon price is hovering near its all-time high as investors focus on the growing trends in the platform. MATIC is trading at $2.40, which is a few points below the all-time high of $2.87. It is about 16,740% above the lowest level in 2020.
Polygon is a layer-2 platform that helps developers optimize their Ethereum projects. By using the platform, they are able to boost their speeds and lower the overall transaction costs. For example, while the average cost of transferring ETH is $6.24, the cost of sending MATIC is about $0.012.
Recently, many developers have embraced the network. Some of the top blockchain platforms that have moved to Polygon’s network are Aave, Curve Finance, and Uniswap.
Users have also embraced the network, with the number of active Polygon accounts rising to more than 660k. The total value of staked MATIC has jumped to more than $2.6 billion, which is a substantial figure considering that Polygon has a total market capitalization of more than $14 billion.
Still, the biggest challenge for Polygon going forward is that Ethereum developers are transitioning the platform from proof-of-work to proof-of-stake. This transition will lead to lower transaction costs and faster speed, which will disincentivize people from using layer 2 platforms.
The daily chart shows that the MATIC price has been in a strong bullish trend in the past few months. The coin is slightly below the important resistance at $2.68. It is also along the 25-day and 50-day moving averages. Notably, the coin has formed what looks like an ascending triangle pattern.
Therefore, there is a likelihood that the Polygon price will keep rising as bulls target the key resistance level at $3.50. This view will be invalidated if the price moves below the key support at $2.0.
This post was last modified on %s = human-readable time difference 06:36