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Polygon’s continual disruption could influence MATIC’s Q1: Here’s how

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Polygon news

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  • Polygon collaborated with a finance giant in tokenizing assets.
  • While NFT interest surged, MATIC could also remain bullish in Q1.

As part of its plans to expand its impact in the crypto sector, Polygon [MATIC] secured a partnership with Hamilton Lane per its $2.1 billion tokenization flagship fund. In October 2022, the investment firm announced that it planned on tokenizing three of its funds, along with its digital asset partner Securitize. 


Read Polygon’s [MATIC] Price Prediction 2023-2024


Now, individual investors can access the fund via the Polygon network. According to Polygon’s co-founder, Sandeep Nailwal, the development has the potential to drive the project’s DeFi growth while admitting that institutional liquidity was a welcome development. 

Offering opportunity in abundance

Colin Butler, Polygon’s global head of institutional capital, commented on the matter. Details from the official blog post revealed how Butler’s comment revolved around democratizing blockchain practical applications and financial opportunity. He said,

“The tokenization of private funds is a massive leap forward for investors and fund managers–a broader pool of investors enticed by greater opportunity and disintermediation.”

This headway comes after the web3 projects recorded giant strides regarding its network. Interestingly, the Polygon Total Value Locked (TVL) has been on a consistent increase since January. The TVL takes into consideration a project’s market capitalization and deposits it into the protocol. 

According to L2Beat, the Polygon TVL was worth $2.9 billion at press time. Thus, a lot of users were able to bridge assets between Polygon and Ethereum [ETH]. This has been with the help of Polygon’s Proof-of-Stake (PoS) validators.

Polygon Total Value Locked

Source: L2Beat

Besides the tokenization fund and TVL hike, Polygon has been performing exceptionally in the NFT market. A few days back, it hit an impressive landmark on the NFT marketplace OpenSea. 

In addition, another marketplace, Rarible, tweeted that the Polygon Ape Yacht Club was its community marketplace of the previous week.

 

This was another confirmation that the OpenSea milestone was no fluke. Santiment data showed that crypto users have sustained the momentum of transacting on the Polygon network. At the time of writing, active addresses on Polygon had increased to 189,000 as MATIC exchanged hands at $1.09.

Polygon users and MATIC price

Source: Santiment


Realistic or not, here’s MATIC’s market cap in BTC’s terms


MATIC to hold the bull in Q1?

Per price action, the Relative Strength Index (RSI) showed that MATIC’s momentum had reversed to the overbought region. At 59.70. However, it was far above the oversold region, indicating that MATIC bulls were still sustaining the buying momentum. 

In a case where the buying power supersedes sell pressure, the MATIC could remain in the rally region in the first quarter. Indications from the Exponential Moving Average (EMA) also aligned with a short-term green level since the 20 EMA (blue) was above the 50.

MATIC price action

Source: TradingView

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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