The Cause Of Crypto Polygon (MATIC) Prices Rising When BTC Bled

JAKARTA – Recently the crypto market has returned to red, but the Polygon (MATIC) crypto has increased in price. The skyrocketing price of MATIC cannot be separated from the development of the cryptocurrency ecosystem itself, including the addition of new protocols, cross-chain migration, and increased support from institutions and investors.

The Polygon ecosystem is growing quite rapidly and evidence of this can be seen in the increased rollout of the protocol, cross-chain migration, launch of Polygon-focused exchange-traded products (ETP), and steady increase in user activity.

One of the biggest drivers of MATIC pricing and on-chain activity is the addition of a new protocol to the Polygon network launch and cross-chain migration project as reported by Cointelegraph.

Additionally, decentralized exchange IDEX has announced that it will be releasing v3 for the Polygon network. This makes it Polygon's first hybrid liquidity DEX. Uniswap is also rumored to be adding support in Polygon for Uniswap v3.

Another reason that drives the MATIC price bullish is the increasing interest of institutional investors. This is because Polygon has also been available in a number of exchange trading products (ETP) in recent months, including the Osprey Polygon Trust and 21Shares Polygon ETP in September and November.

It doesn't stop there, the world's largest digital investment company, namely Grayscale Investments, is also reportedly considering Polygon to be included in its investment product given MATIC's huge potential.

Institutional investor confidence in Polygon has increased, as evidenced by the inclusion of Wintermute. The digital asset market maker injected US$20 million (equivalent to Rp287 billion) to help develop DApps (decentralized applications) at Polygon.

Another factor driving the MATIC price is the increase in active digital wallet users. The number of Polygon wallets will experience significant growth throughout 2021. Now, Polygon wallet users have increased rapidly to 282,760. It seems that the Polygon network is another alternative for Ethereum network users. Because every transaction on the Ethereum network is often subject to high gas fees.

At the time of writing, the price of MATIC is trading at the level of Rp. 30,141. MATIC has increased by 11.2 percent in the last 24 hours as data reports from Coingecko.