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While everyone’s attention was focused on Polygon Network’s MATIC, the token outperformed the larger crypto markets throughout the recent meltdown. MATIC was one of the few tokens that did not fully collapse in the previous week’s massacre. At press time, the coin was ranked 13th on CMC, with a market valuation of more over $14 billion.
Commenting on MATIC’s rally, Amsterdam based technical analyst Michaël van de Poppe took Twitter to highlight,
“MATIC is even close to new all-time highs and erased all the losses from the previous crash… The bull cycle continues.”
If MATIC tumbles below $1.2 in the coming days, Michaël prompted that the “higher low” would merely act as an additional entry point.
For the time being, Michal stated that MATIC was simply “continuing its momentum,” and that a modest decline from its present range was expected in the coming days. During the consolidation, the token’s price might fall anywhere between $1.4 and $1.3. The analyst predicted that after consolidation, MATIC would trade for more than $2.4.
Furthermore, statistics from Into The Block revealed that the rise of the token’s price was associated with the expansion of its network. MATIC has gained almost 61,720 new holders so far this year, and the overall number of addresses with a balance reached a record high of about 87.4k last week.
Polygon, the MATIC token’s network, employs the Plasma Framework and can process up to 65,000 transactions per second in a single block, providing consumers with cheaper and quicker transactions than Ethereum and its competitors.
The Plasma foundation also allows Polygon to construct an endless number of DApps, and in recent weeks, well-established protocols such as SushiSwap, 1inch, and Aave have witnessed growth on Polygon.
Aave, for example, debuted on Polygon in April of this year. Despite a minor snag in the middle, the protocol’s daily unique addresses on Polygon have been steadily increasing. Furthermore, during the third week of May, the daily transaction count for Aave on Polygon fluctuated between 200k and 250k.
Polygon’s low transaction fees, amid Ethereum’s rising costs and network congestion, makes it a better option. With its increased adoption over the past few weeks, Polygon has presented itself as one of the best-known scaling solutions to the community and the same has rubbed off positively on its token’s price.