Here’s Why Polygon’s MATIC Heads Towards New All-Time High

Strong fundamentals and the steady growth of the Polygon network are just some of the factors behind MATIC’s recent rally above $2.00.

MATIC seems ready for a breakthrough

Layer-Two (L2) solutions for the Ethereum network have become a hot topic of discussion. Speculation about the associated tokens supported the massive rally seen in many of the protocols this year. The parabolic growth of the decentralized financial (DeFi) and non-fungible token (NFT) sectors also increased the cost of performing simple transfers. This prompted developers and investors to migrate to L2-supporting platforms.

An L2 solution that saw its token price rise to highs earlier this year and now looks poised to launch a Another breakthrough is Polygon (MATIC). This is a proof-of-stake blockchain protocol that merges scalable solutions on Ethereum to support a multi-chain ecosystem.

Data sourced from TradingView show that MATIC hit a low of $1.01 on September 21. For the past few months, the price has been in a steady uptrend, pushing the altcoin above USD 2.00 on December 1.

MATIC/USDT 1-day chart. Source: TradingView

The Polygon ecosystem is expanding rapidly. Evidence of this can be seen in the proliferation of protocol launches, cross-chain migrations, the launch of a Polygon-focused Exchange-Traded Product (ETP), and a steady increase in user activity.

Expanding the MATIC ecosystem

One of the biggest drivers of MATIC price and on-chain activity is the addition of new protocols to the Polygon network thro project launches and cross-chain migrations.

Most recently, the decentralized exchange IDEX announced that it would be launching v3 of its exchange on the Polygon network. This would make it the first hybrid liquidity DEX on Polygon.