Polygon has been stuck in its current sideways movement since the later half of 2022. Since then, the ecosystem’s native token MATIC has not left its current support of $0.7550. This spot has left MATIC in a very delicate situation even as Polygon itself is setting itself apart from competitors.
Polygon Going Strong
The ecosystem has ended 2022 on a beautiful note, though. Although the year’s bear market clawed through MATIC’s gains, the ecosystem is thriving with partnerships.
As of writing, the Ethereum L2 has over 20 partnerships with major brands like Nike, StarBucks, and Reddit. They mostly dealt with being the ideal NFT platform for their respective NFT collections or marketplace. Year to date, the NFT market of Polygon reached $305 million in trade value.
This isn’t the only bullish development on the platform.
Bhavish Finance, a newly built prediction market platform, has reached new highs. According to the most recent tweet of Bhavish regarding its key metrics, the market platform breached 1,100 weekly active users with over $1.287 million predictions made on the platform.
According to Bhavish’s own website, the platform is handling over $90-$100 million in predictions and gains an average of $2.5 million to $3.5 million.
Major Headwinds Expected
The ecosystem certainly is bullish, but the token is far from it. As of press time, MATIC is up by only 0.1%, showing signs of possible weakness.
MATIC has certainly suffered along with the entire crypto market following the collapse of crypto exchange FTX. Showing strong correlation to both Bitcoin and Ethereum, MATIC is set to have a bumpy 2023.
If ever BTC and ETH continue to suffer in the midst of possible hikes in interest by the U.S. Federal Reserve, we might see MATIC experiencing more pain. However, this is offset by eye-catching developments on-chain.
MATIC total market cap at $6.8 billion on the daily chart | Chart: TradingView.com
Most notable of these is the migration of y00ts and DeGods NFT collection to Polygon. This is a massive win for both Polygon and Ethereum against the touted “Ethereum killer” Solana. But with MATIC stuck on an oscillating path until now, the token’s holders can’t capitalize on the growth of the ecosystem just yet.
For investors and traders, the current support being this strong can support any upward growth. However, any bullish momentum that can be gained can only be attained above the current resistance at $0.8157. With the year only starting out, investors and traders should exercise caution as this sideways motion can always break down towards $0.7163.
-Featured image: Karate by Jesses