Polygon price prediction: Here’s why MATIC is soaring
- The Polygon price has been in a strong bullish trend.
- It has risen by 53% from the lowest level this month.
- The fundraising happened after the latest fundraising by Tiger and Softbank.
The Polygon price jumped sharply on Tuesday morning as investors reflected on the giant fundraising from Tiger Global and Softbank. MATIC, its native token, rose to $2, which was the highest level since January 20th. It has risen by 53% from the lowest level in January this year.
Polygon capital raising
Polygon is a leading layer 2 blockchain platform whose goal is to improve the performance of Ethereum applications.
The platform was built to address the biggest challenges that the industry faces. For example, it is widely known that Ethereum apps are often significantly slow and cost-efficient.
In the past few months, more Ethereum developers have moved to embrace Polygon. Indeed, most Ethereum DeFi networks like Aave, Uniswap, and Curve Finance have all developed Polygon alternatives.
According to DeFi Llama, there are now 183 apps built using Polygon. These apps have a combined total value locked (TVL) of more than $5.4 billion, making it the 7th biggest platform in the world. This explains why the MATIC price has done well over the years.
The main catalyst for the Polygon price is the announcement that the developers had raised $450 million from investors through a token sale. The company raised $450 million at a valuation of $13 billion, making it one of the biggest blockchain projects.
The capital raising was led by Sequoia India, Softbank, and Tiger Global. Other companies that invested are Galaxy Digital, Makers Fund, and Alameda Research. Alameda is owned by Sam Bankman, the founder of the widely-successful exchange known as FTX. Kevin O’Leary also invested.
The fundraising announced at a time when Polygon is expanding its platform to include products like zero knowledge rollups, validium, and optimistic rollups.
Polygon price prediction
The four-hour chart shows that the MATIC price has been in a strong bullish trend in the past few weeks. The coin’s price gained momentum when it moved above the key resistance level at $1.74. It has also moved above the 25-day and 50-day exponential moving averages. It has also moved between the 50% and 38.2% Fibonacci retracement levels.
Therefore, there is a likelihood that the Polygon price will keep rising as bulls target the next key resistance at $2.20. On the flip side, a drop below $1.85 will invalidate that trend.