The Polygon price held steady as cryptocurrencies appeared to have found a bottom. MATIC is trading at $1.1285, which is about 8% above the lowest level this month. It has a total market capitalization of more than $7.52 billion and is the 21st biggest cryptocurrency in the world.
Polygon is a layer-2 blockchain project that works to optimize applications built on Ethereum’s network. This is notable because Ethereum is known for its congestion, which leads to slow speed and higher costs. Therefore, companies that use its layer 2 products see better performance and a smoother operation.
There are hundreds of decentralized applications built using Polygon. Some of the biggest ones are in the Decentralized Finance (DeFi) industry. Indeed, in the past few months, the total value locked of DeFi platforms built in Polygon has jumped to more than $4.2 billion.
At their peak, they had a TVL of more than $0.4 billion. Some of the biggest ones are Aave, QuickSwap, Curve, Balancer, and SushiSwap, among others. Therefore, the Polygon price is rising because of the stability of this ecosystem.
Meanwhile, more companies are embracing Polygon’s technology. For example, last week, the developers collaborated with The9 to develop a new non-fungible token (NFT) trading platform that provides users the ability to develop and interact with NFTs. This platform will be built using Polygon’s technology.
The four-hour chart shows that the MATIC price formed a major bottom at $1.0387 level this month. The price has struggled moving below this level several times before, which could be a bullish sign. At the same time, it has moved above the 25-day and 50-day moving averages. It is still below the 23.6% Fibonacci retracement level.
Therefore, there is a likelihood that the Polygon price will keep rising in October. If this happens, the next key level to watch will be at the 50% retracement level at $1.4010. On the flip side, a drop below the support level at $1.0837 will invalidate this view.