Polygon (MATIC) Among Top Performers, Can It Sustain The Rally?

Popular Ethereum layer-2 token MATIC has surged over 17% in the last 24 hours, leading the crypto market in gains. Its price jumped from the previous day’s low of $0.815 to a local high of above $1. However, the price succeeded in breaking through the $1 barrier, settling at $1.13 at press time.

MATIC’s price had fallen for five days in a row beginning on October 29th. However, it has recently seen a remarkable uptick due to several positive developments. Meta’s recent announcement about supporting NFTs on Instagram leveraging Polygon was the main catalyst. The social media platform’s newest Web3 integration comes amid fierce competition from TikTok and Alphabet’s YouTube.

Instagram owner Meta announced plans to mint, display, and sell Polygon-powered digital collections and NFTs on the platform. This should provide artists with a fresh approach to interacting with and profiting from their fan bases. According to Meta, the photo-sharing app’s latest features will be tested by a handful of US creators. The goal is to reach more people in more nations as quickly as possible. Instagram intends to incorporate a whole end-to-end toolbox that can be utilized throughout the process. This would cover NFT production to NFT display and sales on and off social media.

In May 2022, Meta (then known as Facebook) began testing the service, and by the end of September, it had expanded to 100 nations. This allowed Facebook and Instagram users in the United States to connect their wallets and share their digital collections on platforms. Users can automatically tag makers and collectors without incurring network expenses.

For artists, NFTs offer a way to convert their social capital into monetary reward. This way, fans may appreciate artists by collecting and curating digital art collections. Polygon noted that 50 million individuals worldwide consider themselves to be online producers. They also highlighted that NFTs enable these people to own their digital works published online. Polygon’s co-founder Sandeep Nailwal hailed the agreement as a major milestone on the road to bringing one billion people to web3.

Following Meta’s Instagram post that it will support Polygon NFT, MATIC investors woke up to a 12% gain. Last week, MATIC’s price surged beyond $0.88, which is now acting as support.

Since then, the price of MATIC has risen past $0.95. Since October 29th, the cryptocurrency has provided enormous returns for its holders. Analyst and crypto trader Avramis predicts that MATIC’s price will rise to $1.25 this November. Many market watchers see this as confirmation that MATIC’s recent positive trend reversal will persist.

However, not everyone is bullish about Polygon’s price trend; some see a potential correction phase ahead. A decline to the $0.88 level would prove bears’ dominance and discredit the bullish thesis. If bulls cannot maintain their pace, the MATIC price might fall below the $0.72 level.