2024

DeFi

Polygon

Daily

On Feb. 26, MATIC’s price crossed $1.05 for the first time in 2024; the steady rise in Polygon network activity in correlation to the defi market boom suggests more bullish action could follow.&nbsp; 
Layer-2 networks like <a href="https://crypto.news/price/polygon/" target="_blank" rel="noreferrer noopener">Polygon</a> (MATIC) and Optimism (<a href="https://crypto.news/price/optimism" target="_blank" rel="noreferrer noopener">OP</a>) have been on a tear in recent weeks as investors pile billions of dollars into Ethereum (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="noreferrer noopener">ETH</a>) leading defi protocols. 
<h2 class="wp-block-heading" id="defi-market-boom-driving-matic-price-rally">Defi market boom driving MATIC price rally</h2> 
Amid widespread expectations of Fed rate cuts, investors are increasingly switching focus towards risk assets. As the <a href="https://crypto.news/bitcoin-btc-copy-the-sp-500-bull-run-analyst-predicts/" data-type="post" data-id="14240774" target="_blank" rel="noreferrer noopener">S&amp;P 500</a> soared to historic peaks following NVIDIA’s <a href="https://crypto.news/worldcoin-market-cap-openai-nvidia/" data-type="post" data-id="14251944" target="_blank" rel="noreferrer noopener">bullish earnings</a>, defi markets in the crypto sector have also recorded significant capital inflows.&nbsp; 
L2 networks like MATIC, OP, and Arbitrum (ARB) are industry leaders in facilitating lending, borrowing, payments, and other smart-contract-based decentralized finance activities.&nbsp; 
Last week, the Optimism price came close to hitting a <a href="https://crypto.news/altcoins-february-kaspa-optimism/" data-type="post" data-id="14249580" target="_blank" rel="noreferrer noopener">new all-time high</a>, while MATIC’s price reached a six-month peak of $1.05 on Feb. 27.&nbsp; 
<figure class="wp-block-image">
 <img loading="lazy" decoding="async" width="1600" height="682" src="https://crypto.news/app/uploads/2024/02/image-79.png" alt="Polygon price hits 2024 peak as defi markets pull $30b inflows - 30" class="wp-image-14252966">
 <figcaption class="wp-element-caption">
 Polygon (MATIC) price action vs. Total DeFi Markets, Feb. 1 to Feb. 27 | Source: <a href="https://www.tradingview.com/x/nT57yJbW/" target="_blank" rel="noreferrer noopener">TradingView</a>
 </figcaption>
</figure> 
TradingView’s total defi market cap charts track the cumulative valuation of decentralized finance-related tokens. When plotted next to the total defi market cap trends for February 2024, MATIC price action has displayed a stark similar outing for the month. 
The chart shows that the total defi market cap has attracted $30 billion in inflows between Feb. 1 and Feb. 27, representing a 43% boom. This closely correlates to MATIC’s 42% price growth performance during that period.&nbsp; 
The defi market has now ballooned to a <a href="https://crypto.news/defi-tvl-surpasses-22-month-high-as-market-goes-bullish/" data-type="post" data-id="14252835" target="_blank" rel="noreferrer noopener">22-month high</a>. Considering Ethereum liquidity staking deposits are receiving historic-level deposits, more inflows could be recorded in the coming days, likely creating a prolonged bullish demand cycle for Layer-2 scaling projects like Polygon.&nbsp; 
<h2 class="wp-block-heading" id="polygon-network-activity-trends-at-a-5-month-peak">Polygon network activity trends at a 5-month peak&nbsp;</h2> 
The level of user activity recorded on the Polygon network in recent weeks further affirms the correlation between the defi boom and MATIC price action.&nbsp; 
Santiment’s&nbsp;daily active addresses (DAA) track the number of unique addresses that carry out valid transactions on a blockchain network over 24 hours.&nbsp;Polygon has attracted unusually high user activity since the turn of the year despite choppy price action.&nbsp; 
As depicted, Polygon’s Daily Active Addresses (DAA) hit a five-month peak of 427,000 on Feb. 25, having been on a meteoric rise since the turn of the year, even amid choppy price action.&nbsp; 
<figure class="wp-block-image">
 <img loading="lazy" decoding="async" width="1600" height="936" src="https://crypto.news/app/uploads/2024/02/image-80.png" alt="Polygon (MATIC) Daily Active Addresses vs. Price" class="wp-image-14252967">
 <figcaption class="wp-element-caption">
 Polygon (MATIC) Daily Active Addresses vs. Price | Source: <a href="https://embed.santiment.net/chart?ps=p-matic-network&amp;pt=MATIC&amp;df=2023-10-14T00%3A00%3A00.000Z&amp;emcg=1&amp;wm=price_usd%3Bdaily_active_addresses&amp;wax=0%3B1&amp;wc=%2326C953%3B%23FFAD4D&amp;ws=%7B%22interval%22%3A%221d%22%7D%3B" target="_blank" rel="noreferrer noopener">Santiment</a>
 </figcaption>
</figure> 
The rising values of Daily Active Addresses are a key bullish indicator highlighting that the core services offered on the underlying network are in demand.&nbsp;&nbsp; 
When it coincides with a historic price uptrend, as observed above, it suggests that the rally is driven by organic utility and not merely speculators FOMO-ing in.&nbsp; 
More importantly, Polygon’s activity surge amid the defi boom further emphasizes its status as one of the most sought-after scaling networks. This puts MATIC in a vantage position to capture more value as the defi market gains more traction in the coming weeks.&nbsp; 
<h2 class="wp-block-heading" id="matic-price-forecast-1-20-target-in-firm-focus">MATIC price forecast: $1.20 target in firm focus&nbsp;</h2> 
Based on market trends, MATIC’s price is predicted to reach the next target of around $1.20. However, in the short term, the bulls must first clear the initial resistance in the $1.10 territory.&nbsp; 
IntoTheBlock’s global in/out of the money data shows that 52,830 addresses had acquired 172.3 million MATIC at the average price of $1.11. Given that they have been holding at a loss since April 2023, many could opt to take some profits.&nbsp; 
If the defi market boom enters second gear, the MATIC pulls could capitalize on the resulting network traction to drive the price rally above $1.20 as predicted.&nbsp; 
<figure class="wp-block-image is-resized">
 <img loading="lazy" decoding="async" width="1600" height="682" src="https://crypto.news/app/uploads/2024/02/image-79.png" alt="Polygon (MATIC) price prediction, February 2024 " class="wp-image-14252965" style="width: 100%;height:auto">
 <figcaption class="wp-element-caption">
 Polygon (MATIC) price prediction, February 2024 | Source: <a href="https://app.intotheblock.com/coin/MATIC/deep-dive?group=financials&amp;chart=inAndOut" target="_blank" rel="noreferrer noopener">IntoTheBlock</a>
 </figcaption>
</figure> 
Still, the bears cannot negate this bullish prediction if the initial profit-taking wave sends MATIC price tumbling below $0.90. However, given the overall positive sentiment surrounding the Layer-2 token markets, these bearish prospects seem far-fetched.&nbsp; 
The 59,330 addresses that bought 972,980 MATIC at the average price of $0.91 could offer significant short-term support.

Polygon price hits 2024 peak as defi markets pull $30b inflows

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