Polygon (MATIC), a top-tier layer two scaling solution built on the Ethereum (ETH) network, is preparing for an inevitable liftoff amid the mainstream adoption of web3 protocols and smart contracts. The mid-cap altcoin, with a fully diluted valuation (FDV) of about $8.6 billion,” and a daily average trading volume of around $280 million, is in the early stages of the macro bull cycle.
Furthermore, the MATIC price is only up around 70 percent from its low of about 50 cents last year.
Why Bet on Polygon Win this Bull Cycle
Following the recent Ethereum’s Dencun upgrade, the Polygon network, as with other L2s, has registered increased on-chain activity due to the notable reduction in transaction fees. According to market data provided by defillama, the Polygon network has a total value locked of about $1 billion and collected fees of around $111k from a 24-hour trading volume of around $112 million on its web3 protocols.
With over $9.9 billion in bridged TVL, the Polygon network stands to benefit from the rising adoption of Ethereum’s web3 ecosystem fueled by institutional investors.
Midterm MATIC Price Forecast
After closing last month on a Doji candlestick, MATIC price opened April on a bearish note amid the ongoing crypto correction led by Bitcoin. Nonetheless, MATIC price has consistently closed above the 50 monthly Moving Average (MA) as the Relative Strength Index (RSI) retests the 50 level. .
According to a MATIC price analysis by Ali Martinez, the altcoin is about to rebound in the near term after the TD sequential indicator pointed to a buy signal in the daily time frame. The crypto analyst issued a midterm target of between 95 cents and $1 for the MATIC price.
Furthermore, MATIC price has been forming higher highs and higher lows on the weekly time frame since the bullish breakout late last year.
