Polygon (Matic) Jumps 60% In Seven Days, 16% In 24 Hours, But Why?

Why Polygon’s Matic Has Been On A Price Hike?

The crypto market has had a rough time since the start of the year. The last few weeks have been the worst for the market. However, things seem to be getting better for coins like MATIC. The crypto has gained over 60% over the last seven days, with a 16.6% over the last 24 hours. Matic is currently trading at around $0.89.

? #Altcoins spent the first half of 2022 seeing market cap gains being flushed rapidly. However, projects like $MATIC have made up for some of its losses quickly, jumping +63% in a week. Address activity is also rising, showing an intriguing divergence. https://t.co/eJ3hMbkE2N pic.twitter.com/cz2gxvaOlL

— Santiment (@santimentfeed) July 18, 2022

There are a few reasons why MATIC is currently rising in price:

Increased Optimism By Analysts

Of late, crypto analysts have been expressing a lot of optimistic forecasts for Matic. As is always the case, such positive expressions increase investor confidence and lead to increased demand. Increased demand triggers a corresponding price increase.

Market Is Recovering

As mentioned above, the crypto market has been hit hard over the last few months. The collapse of the Terra Luna and UST made things worse. However, things seem to be looking up. With this, Matic is affected positively.

DeFi Is Expanding On Polygon

The number of DeFi protocols on Polygon has been increasing. Since Matic is the native crypto on the blockchain network, its demand is bound to rise along with its price. The total value locked on Polygon stands around $1.76B.

Collaborations

Polygon has collaborated with various entities in the blockchain and crypto industry. The network teamed up with the likes of Disney on July 15th and scored a selection in Disney Accelerator Program for the year 2022. It has also partnered with Flipkart Firedrops in the NFT field.

The other thing the team is saying is that they are going to reveal the most important thing of 2022. Such surprises always positively affect the coin price as investors buy the coin hoping for some major announcements.

When we started @0xPolygon, the Ethereum community embraced us. That empowered us to onboard 30k apps and 150M users and become a giant among scaling efforts and alt L1s.

We made a promise to stay committed and give back to Ethereum.

In 3 days, we are delivering on that. ?? pic.twitter.com/hRBN8DOVF7

— Mihailo Bjelic (@MihailoBjelic) July 17, 2022

Increased Matic Staking On Various Platforms

Several crypto-related platforms are offering staking options for Matic, which in turn increases the coin’s popularity and adoption. With staking, users who commit their Matic coins earn rewards in terms of the crypto.

Matic has gained both in price and popularity for these reasons. It’s unclear whether this upwards trend will continue and how far the coin is set to go before the bull run cools down.