The Polygon MATIC token price is surging due to a sequence of high profile partnerships with Meta, JPMorgan and Reddit involving NFT development.
Currently trading around $1.10, MATIC has risen some 30% from $0.84 it was at just two days ago.
Polygon, previously known as Matic Network, is a platform designed to support and develop the infrastructure of Ethereum.
With a 480% rise in MATIC token holders in the past week, it seems to be performing this service admirably.
Partnerships with Meta Platforms and JPMorgan
The most immediate reason for MATIC price move is Polygon’s partnership with Meta Platforms, the owner of Instagram. The photo-sharing app will now utilize Polygon in enabling users to mint, display, and sell their digital artwork in-app.
According to the announcement, testing for this non-fungible token (NFT) will start with a few users in the United States.
Following this, Instagram hopes to roll out a toolkit helping users with the process from start to finish. As it will begin with NFT creation on Polygon, this toolkit seems likely to contribute to the platform’s usership.
In addition to greater consumer awareness through Instagram, institutions are also making greater use of Polygon. Investment bank JPMorgan recently made its first decentralized finance transaction, in collaboration with the Monetary Authority of Singapore.
The pilot program of MAS’s Project Guardian saw the bank, among other collaborators, successfully trial cross-border transactions with tokenized assets.
The parties used Polygon to facilitate these transactions, as well as a modified version of DeFi protocol Aave. Although skeptical of cryptocurrencies, JPMorgan has been making investments in blockchain technology to help facilitate payments.
Reddit Relationship and the Rise of MATIC Price
Meanwhile, popular social network Reddit has also benefited from its partnership with Polygon. As NFT sales have been plunging over the past year, Reddit has seen sales for their Avatar NFTs surge recently. Reddit enabled digital artists to create and mint NFTs on Polygon, which they can then sell to users as avatars.
A recent analysis from Coinbase emphasized that Polygon made a notable contribution to the expedient adoption of these avatars. The role it plays as a Layer-2 solution for Ethereum enables faster transactions with lower network fees. Coinbase underlined these as significant barriers to entry for crypto adoption that Polygon seems to have overcome.
Regarding the MATIC price breakout, one analyst put its prospective resistance at $1.30. The analyst also seemed wary of the sharp rise prior to the release of employment figures from the United States.
Around $1.30 would be resistance for $MATIC and this is breaking out of bear market, so I will look to DCA into MATIC after it reaches $1.30 and makes a correction. But coins pumping before important NFP numbers kinda feels scammy. We will know soon in 6h. pic.twitter.com/Th27PVbc1E
— Logical TA (@tendorian9) November 4, 2022