Polygon’s native token MATIC has seen a massive price hike overnight, as the altcoin’s price has increased nearly 20% in the last 24 hours. Most importantly, this is the first time since early August that MATIC has crossed the $1 mark. So, what’s driving this sudden jump? And are we headed for an imminent bull run?
JPMorgan executes its first DeFi transaction on Polygon
Because of its cheap transaction fees, global investment banking giant JPMorgan carried out its first DeFi transaction on the Polygon blockchain earlier this week. The transaction was a part of MAS’s (Monetary Authority of Singapore) Project Guardian pilot program to test the use cases for asset tokenization and DeFi.
According to its Head of Blockchain Launch and Digital Assets Ty Lobban, JPMorgan chose Polygon (MATIC) because of the network’s scalability and cheap transaction fees. The transaction was executed by issuing a tokenized Singapore Dollar (TSD) deposit worth $71,000 for the Japanese Yen.
This initiative demonstrated Polygon’s utility and reinstated the market’s positive sentiment towards MATIC.
Instagram launches NFT trading with MATIC
Popular social media platform Instagram has long teased the idea of allowing NFT trading on its platform, as a part of the company’s wider metaverse and web3 initiatives. On November 3rd, Instagram officially announced that it will soon allow users to create, buy, and sell non-fungible tokens directly on the platform using MATIC. It will also support integration with OpenSea, Solana, and the Phantom Wallet.
This announcement has been a major factor behind MATIC’s price hike, as it will further increase the utility of the altcoin and extend its usage to the wider NFT community. The blockchain’s founder Sandeep has also tweeted that he aims to make the altcoin one of the top-3 cryptocurrencies in the market, alongside BTC and ETH.
Reddit’s NFT launch on Polygon
It’s also likely that MATIC is also being boosted by Reddit’s earlier initiative of launching NFTs on Polygon’s Avatar Marketplace. The popular social networking platform launched Polygon-based non-fungible avatars back in July, where users can directly trade without needing a crypto wallet. Since then, Reddit has been constantly airdropping MATIC NFT avatars for its hardcore users.
The fact that Polygon is being utilized by some of the leading social networking platforms and now by banking giants shows that the altcoin is on the right track to receiving mass adoption. The blockchain network is being seen as a more flexible, scalable, and cost-efficient alternative to other popular options such as Ethereum and Solana.
These factors have been a driving force behind the altcoins price jump this week. If market sentiment continues to stay positive, and the token is able to sustain its $1 resistance level, then we could very well see MATIC enter a bull run and potentially reach back to its all-time high.