- Polygon (MATIC) recently dropped out of CoinMarketCap’s top 20 cryptocurrencies rankings.
- But the asset has bounced back amid the recent rally.
- The recent rally comes as Polygon’s Ethereum scaling mission gains traction.
MATIC, the native token of the Polygon PoS blockchain, experienced a boom in Q1 2024 before entering a downtrend and eventually falling out of favor. CoinMarketCapThe top 20 cryptocurrencies by market cap for the week beginning July 28 have been on this list almost every time since the 2021 crash.
But in the recent parabolic uptrend, MATIC has once again found itself in the top 20. Can MATIC hold its own this time?
Polygon (MATIC) Market Cap Up 30%
Polygon (MATIC) is back after a 3 week hiatus. CoinMarketCapMATIC has taken the 19th spot in the top 20 crypto assets, ahead of NEAR Protocol and Litecoin. This move comes as MATIC’s market cap has surged by a whopping 30% in the past seven days, from around $4 billion to over $5.2 billion. CoinMarketCap This is the data at the time of writing. By comparison, NEAR Protocol and Litecoin boast market caps of approximately $5.1 billion and $4.8 billion, respectively.
Source: CoinMarketCap
The market cap increase coincides with a MATIC price rally of over 30% from around $0.4 to $0.53 at the time of writing, which comes amid a relief rally seen in several altcoins earlier in the week. In the rally, MATIC gained alongside assets like Tron (TRX), Cardano (ADA), and Avalanche (AVAX), while market leaders like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) posted losses.
Amid the rally, MATIC has broken out of a multi-month downtrend that many analysts have pointed out, with many expecting the asset to rally to at least the $1 price range in the short term.
The reason for the recent parabolic surge is unclear, but it comes as Polygon’s (MATIC) vision for scaling Ethereum gains increasing traction.
MoveVM joins Polygon (MATIC) ecosystem
Last year, Polygon (MATIC) outlined a grand plan to scale Ethereum infinitely by horizontally connecting as many chains as possible on top of a Layer 1 chain, regardless of technology stack, consensus mechanism, or virtual machine.
In late July 2024, Polygon’s vision received a major boost when Movement Labs revealed that they had selected AggLayer, the interoperability solution at the core of Polygon’s aggregation chain architecture, to integrate liquidity on the MoveVM Layer 2 chain. This is the first altVM to do so. As a side note, MoveVM was originally developed by Libra, the cryptocurrency arm of Meta (formerly Facebook), and has been adopted by next-generation Layer 1 chains such as Aptos and Sui.
Beyond this latest move, Polygon is one step closer to its anticipated MATIC to POL upgrade scheduled for September 4th. Polygon describes POL as a “hyper-productive token” that will allow holders to earn multiple rewards across connected blockchains.
On the other side
- The market cap gap between Polygon (MATIC) and NEAR is still small.
- Large price increases, such as the one recently experienced by MATIC, are usually followed by a correction.
Why this matters
Polygon’s (MATIC) recent rally suggests that investors still have significant interest in the asset despite its dismal price performance this year.
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