The price of Polygon’s MATIC token has managed to skyrocket in terms of value throughout the week.
Matic MATIC/USD, the native currency to Polygon, saw swings in value throughout this week like never before throughout its existence. On April 18, Polygon was trading at $0.33 but fast-forward a month to May 18 and it was trading at $2.55.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
On Wednesday, Polygon saw swings throughout each hour. At one point it had a value of $2.39 and recorded a daily low of around $1.30 before bouncing back higher.
Regardless of Wednesday’s extreme volatility, Polygon stands out as a cryptocurrency that is still up for the seven-day period. At the time of writing, Polygon is up nearly 40% over the past week and around 410% over the past month.
Investors hunting for momentum plays are taking a close look at Polygon on Wednesday. Should you be a buyer of Polygon at current levels? Let’s take a closer look.
Fundamental look at Polygon
You might be wondering at this point why and how Polygon suddenly gained in value during a difficult time for the broader cryptocurrency market.
The Matic Network rebranded to Polygon in February of 2021 and became an interoperable blockchain scaling network. It processes secured, expandable and instant transactions powered by Proof of Stake side chains.
It is one of the best solutions when it comes to making transactions on the Ethereum network faster as well as cheaper. However, only recently has the MATIC token seen resounding popularity and success due to the fact that Polygon has only recently started being widely used.
If you’re going out there to purchase MATIC, make sure that you understand the background of the project and what you are actually getting yourself into.
Should you buy MATIC now? keep an eye on the $1 level
Given the fact that the value of MATIC just jumped from $1, to $2.55 and back down to around $1, only to stagnate at roughly the $1.30-1.70 level on Wednesday, we honestly cannot recommend short-term traders take a chance on the momentum continuing.
However, given the fact that this is still an astronomical difference in value when compared to just last month when it was $0.33, we can see that it did indeed grow and has the potential of doing so again in the future.
Savvy investors with a long-term timeframe should look to buy at around the $1 mark. At this price, buying MATIC is a wise investment given its long-term potential. But investors should keep a tight risk profile and set a stop loss at around $0.90 and then re-examine another entry once volatility eases and the price stabilizes.
Throughout all of this, Polygon has become one of the top 15 cryptocurrencies in the world thanks to the bearish market. With platforms such as Chainstack adding support for Polygon as of recently, among many others, there is no stopping XRP, and only time will tell how high it can actually go in terms of value.
Polygon was formerly known as the Matic Network and has surged in value, partially due to the adoption of its blockchain in gaming, Non-Fungible Tokens (NFTs), and Decentralized Finance (DeFi). In March, even Coinbase allowed users to trade with Polygon’s native coin MATIC.
Even despite the current high level of volatility MATIC is facing, its future seems bright, and only time will tell how far the Polygon technology evolves our current cryptocurrency ecosystem.