Polygon’s native MATIC token has caught fire in 2024, more than doubling year-to-date already by blazing past the significant $1 price level this week. The layer-2 scaling network has emerged as a primary beneficiary as decentralized finance (DeFi) euphoria kicks into overdrive.

TLDR

MATIC price broke past the $1 barrier, hitting over $1.05 recently for the first time since early 2022
The price surge comes amid booming growth in the overall DeFi market, which has attracted $30 billion inflows
MATIC price gains have closely correlated with 43% growth in the total DeFi market cap the past month
Polygon network activity has hit 5-month highs with over 427,000 daily active addresses
Analysts predict MATIC targeting $1.20 next if bulls can clear initial resistance around $1.10 where some sellers may emerge

With billions flooding back into the crypto economy, MATIC looks poised to leave its 2023 bear market woes far behind with sights trained on $1.20 next.

MATIC surged as high as $1.05 today its best price since May 2022. The move comes in lockstep with the total value locked across DeFi protocols ballooning to heights not seen since 2021.

The DeFi market has expanded by over 40% in February alone, crossing $140 billion as investors pour in seeking high yield opportunities.

Polygon has established itself as the leading Ethereum sidechain facilitating lending, trading, payments and more decentralized financial activities.

So as the tide rises for DeFi at large, MATIC directly benefits from increasing demand for its services scaling the ecosystem.

Daily active addresses on Polygon have correspondingly hit five-month highs above 427,000 – validating the network’s integral role amid the heightened on-chain action.

With the Fed expected to cut interest rates later this year, the macro backdrop should continue stoking crypto and DeFi adoption tailwinds. And Polygon’s integral positioning looks likely to translate surging activity into extended MATIC price upside as analysts set sights on $1.20 next.

Bulls must first traverse initial resistance around the $1.10 level where some sellers may look to take profits. According to data from on-chain analytics firm IntoTheBlock, over 50,000 addresses holding 172 million MATIC had bought in this zone last April. With the chance to finally exit at break even, their selling pressure could momentarily halt momentum.

However should the blistering DeFi demand cycle maintain intensity, MATIC looks poised to power through and continue ascending to target $1.20 in short order. And with staking rewards continuing to lock up MATIC supply, upside price potential expands further as existing stacks appreciate.

Of course, crypto markets remain notoriously volatile and face potential regulatory wildcards that could rapidly pivot market trajectories.

But based on current on-chain and fundamental trends, MATIC offers a promising risk-reward ratio for riding the raging DeFi wave’s accelerating growth in months ahead.

The post Red-Hot Polygon MATIC Smashes Through $1: Eyes $1.20 As DeFi Mania Fuels Relentless Rally appeared first on Blockonomi.

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Filed under: Bitcoin - @ February 28, 2024 11:18 am