The Polygon price has continued to defy gravity in the past few weeks. The MATIC price has surged by more than 120% in the past seven days and by more than 40% in the past 24 hours. This has propelled its market capitalization to more than $10 billion and moved it from obscurity to become the 20th-largest blockchain in the world.
Why Polygon Matic price surged
Polygon is one of the fastest-growing blockchain projects in the world. The recent price rally is mostly because of its close relationship with Ethereum, the second-biggest blockchain project in the world.
Polygon is a project that built a framework to help developers who are building Ethereum-compatible applications. The platform offers a one-click deployment of preset blockchain networks, a growing set of modules, interoperability protocol, and adaptor modules.
Today, some of the most popular projects using Polygon are The Graph, Biconomy, API3, Chainlink, and Strain, among others.
Recent data shows that the number of projects in the network is growing. According to Matic Explorer, the average block time has increased to 2.1 seconds while the total transactions has risen to more than 65 million while the number of blocks has grown to more than 14 million. This reflects the rising demand for Polygon and MATIC, its native currency.
Further, the MATIC price has gained after the network integrated some of the biggest Ethereum-built DeFi projects like Aave, Curve, and SushiSwap. As their total value locked rises, investors believe that Polygon will keep rising.
Polygon price prediction
The four-hour chart shows that the MATIC price has been in a strong upward trend in the past few days. The rally gained momentum on May 11 when it moved above the important resistance at $0.9472. Since then, it has jumped by more than 73%. The rally is being supported by the 50-day and 25-day moving averages and the SuperTrend indicator.
Therefore, in my view, the fear of missing out (FOMO) action will likely see it rise by another 33% as bulls attempt to reach the psychological level of $2. Nonetheless, a drop below $1.2 will invalidate this trend.