MATIC Price Peaks Following Google’s Association with Polygon Network
MATIC saw a surge nearing $0.60 on Monday, spurred by Google Cloud’s new role as a validator node in the Polygon framework. Crucial on-chain statistics and derivatives market intel could predict the trajectory of MATIC in the upcoming days.
On September 29, the Polygon group disclosed Google Cloud’s fresh status as a decentralized node validator. This announcement stirred the early investors, offering crucial clues regarding future MATIC price fluctuations. Is MATIC price about to explode into a stratosphere or is it just another short-term spike that won’t last? Follow through to find out.
Google’s Association Boosts Big-Investor Sentiment in MATIC
Following Google Cloud’s validator role declaration, prominent MATIC investors ramped up their market engagements. Data indicates that October 1, 2023, marked 68 major deals within the Polygon network.
Interestingly, this surge in big-investor trade is the most significant since September 7.
The ‘Major Transactions’ criterion cumulatively counts confirmed deals surpassing $100,000 within a day. Astute investors see a rise in major transactions as a positive market indicator.
One reason is that substantial trades elevate market fluidity, enabling order completion at optimal rates. More crucially, heightened whale demand can trigger price hikes when there’s a market supply deficit.
Bullish Momentum Observed Among Speculative Traders
MATIC’s recent updates have undeniably invigorated the spot markets. Concurrently, fresh figures from the derivatives sector highlight that speculative participants in Polygon are placing optimistic wagers.
On September 28, aggregated MATIC Open Interest plummeted to $86 billion. Yet, post the announcement, this statistic started climbing, reaching a monthly zenith of $116 million by October 1.
This surge denotes an additional $30 million capital flow into the MATIC futures scene. The speculation is that Google’s involvement will augur well for Polygon’s long-term prospects.
Open Interest represents the total derivatives contracts for an asset across renowned Futures exchanges. A surge in this metric typically implies increasing capital and fresh market players, signaling a bullish trend.
The synergy with Google Cloud could potentially amplify network demand, further propelling the current MATIC price wave.
Predicting MATIC’s Price: A Possible Surge to $0.80
All the pivotal data assessed suggest a that major cryptocurrency exchanges like Gate.io should see a very plausible MATIC price increase surpassing $0.80. The Global In/Out of Money Around Price (GIOM) data, showcasing the current MATIC holder’s buying prices, echoes this optimistic perspective.
The data suggests a potential leap over $0.80 if MATIC manages to bypass the initial $0.70 resistance. A representation indicates 66,370 entities purchased around 1.73 billion MATIC at an average rate of $0.70. If they liquidate prematurely, it might pose challenges for bullish trends.
However, if these major players continue their MATIC acquisitions, we might see prices shooting beyond $0.80.
On the flip side, if MATIC prices dip below $0.70, it might lead to a bearish takeover. Data showcases that 3,770 entities procured about 350.9 million Polygon tokens at a peak price of $0.54.
These participants, acting as a last bastion, will probably rally to thwart any bearish slump. Yet, if MATIC breaches this essential support threshold, its value might plummet below $0.50.
The What of Polygon and MATIC
Polygon, formerly known as Matic Network, is a multi-chain scaling solution for the Ethereum network. It’s designed to enhance the speed of transactions, reduce fees, and provide a superior user experience without compromising on security. By creating a multi-chain system compatible with Ethereum, Polygon effectively solves some of the scalability and usability issues associated with the Ethereum blockchain.
MATIC, on the other hand, is the native cryptocurrency token of the Polygon network. It plays a pivotal role in the ecosystem, functioning as the unit of payment for transaction fees and also serving as an instrument for governance and staking on the network. MATIC can also be staked which makes it a great asset to hold over a long period of time and if this gets your heart pumping, you can learn how to buy MATIC in one of the specialised guides.
The Multi-chain Concept Explained
Being “multi-chain” refers to a system where multiple blockchain networks coexist and operate concurrently, either independently or interlinked through various mechanisms. This setup allows for the decentralization and expansion of processing capabilities and resources, accommodating diverse use cases and avoiding potential bottlenecks that can occur in a single-chain system.
Multi-chain architectures can include sidechains, which run in parallel to a main chain and handle specific tasks or applications, and interoperability solutions, which enable different blockchains to communicate and share information. The essence of a multi-chain approach is to leverage the strengths of individual blockchains, allowing for increased scalability, specialized functionalities, and the facilitation of cross-chain transactions, all while ensuring a seamless user experience.
MATIC’s Competitive Landscape
Polygon, doesn’t stand alone in the mission to scale and enhance the Ethereum network. Several projects have emerged, seeking to alleviate Ethereum’s scalability challenges. Cosmos and Polkadot are among the prominent names, each with its unique approach to interoperability and creating a connected ecosystem of blockchains.
Layer 2 solutions like Optimism and zkRollups focus on increasing transaction speeds and reducing fees within the Ethereum network itself. And while each of these competitors offers distinct advantages, they all share a common goal: enhancing blockchain usability and paving the way for mainstream adoption.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.