Polygon (MATIC) is the Biggest Gainer among Top Cryptos, Why?

Paigambar Mohan Raj
Source: SimpleHold

Polygon (MATIC) has come out on top as the biggest gainer among the top-ranked crypto projects. In the last 24 hours, the token has rallied by up to 14%, and by 30% in the last two days. The push is attributed to positive news and sentiment around the Ethereum scaling solution.

Source: Coingecko

Now, Polygon (MATIC) has been making headway in the web3 space. Since the end of June, the cryptocurrency has gained a total of 270%. But there are a host of reasons for its latest upward rally.

What’s pushing Polygon (MATIC)?

One of the biggest pieces of news related to MATIC was Meta’s announcement to allow Instagram users to mint and put up for sale, NFTs which will be powered by the MATIC network. The India-based blockchain is the first such partner for the social media giant.

Meta stated,

“Creators will soon be able to make their own digital collectibles on Instagram and sell them to fans, both on and off Instagram. They’ll have an end-to-end toolkit – from creation and showcasing to selling.”

Moreover, Meta is committed to enticing influencers from TikTok and encouraging them to use its Instagram platform more frequently. In contrast to Apple, which takes a 30% cut of all NFT sales made through the App Store, Meta has promised to take no commission on sales.

Furthermore, on the same day as the Meta announcement, JP Morgan, the financial giant, conducted its first-ever decentralized finance (DeFi) trade on the Polygon (MATIC) network. The move was conducted under Singapore’s Project Guardian, under the MAS (Monetary Authority of Singapore).

Sopnendu Mohanty, Chief FinTech Officer, MAS, stated,

“The live pilots led by industry participants demonstrate that with the appropriate guardrails in place, digital assets and decentralised finance have the potential to transform capital markets.”

Other developments in MATIC

Apart from industry giants making moves on the Polygon blockchain, the project has also reached new milestones on the price charts.

The 50-day simple moving average (SMA) has surpassed the 200-day SMA on the MATIC/USD daily price chart, confirming what chart experts refer to as a “golden crossover.” According to the pattern, the recent average price is higher than the long-term average price. This is a sign that an uptrend is continuing.

Source: CoinDesk

Additionally, open interest for MATIC has also nearly doubled in the last 24 hours. According to Coinglass, open interest reached $415 million from the previous $209 million.

At press time MATIC was trading at $1.10, down by 0.9% in the last hour.