Ryan Sean Adams, a vocal Ethereum commentator and crypto investor, is bullish on MATIC, Polygon’s native token. On November 8 to X, Adams said MATIC should be a top-10 crypto asset, adding that people are sleeping on tier-2s.
Polygon (MATIC) remains in an uptrend
As of writing on November 8, MATIC is among the top 15 most valuable coins by market capitalization. It also remains volatile, fluctuating and moving up and down the market capitalization rankings. Still, given its spot valuation of over $7.3 billion according to CoinMarketCap (CMC), a crypto tracker, MATIC remains relatively liquid with a broad user base.
Etherscan facts as of November 8, it shows there are 629,967 MATIC holders, down about 2%, but the number remains higher despite the contraction after the 2022 crypto winter, which spilled over into 2023.
As of November 8, MATIC is up 60% from its September 2023 low. According to CMC, the coin is also up 13% on its last trading day, pushing its weekly gain to over 27%. Looking at the candlestick setup in the daily chart, upside momentum is strong and buyers appear to be doubling down.
Currently, the bull bars are aligned along the upper BB, indicating intense buying pressure. At the same time, MATIC is in a bullish breakout formation, flying past the August highs.
Polygon, a sidechain, is one of many scaling solutions for Ethereum. The platform is compatible with Ethereum, allowing protocols to build on Polygon while benefiting from the high activity and security of the first smart contract network. Polygon is also considered a layer-2, although it is not technically a layer-2 as it does not rely on roll-ups like Arbitrum or OP Mainnet.
Time to double down on MATIC and Layer-2 tokens
According to Adams, considering tier-2 tokens, including MATIC or ARB, at spot levels could translate into more profits in the next bull run. Nevertheless, it should be noted that MATIC, for example, is down 72% from its 2021 highs.
Additionally, the coin is trending within the June bear trade range. A comprehensive close above this level could signal the end of the bear run, potentially causing buyers to target $1.5.
At the end of October, Polygon Labs officially launched the POL, a token that will prime Polygon 2.0, Ethereum, signaling the first steps to phase out MATIC. POL will play more roles in Polygon 2.0, specifically powering an ecosystem of zero-knowledge-based layer 2 chains using Polygon’s infrastructure. News of the launch of this smart contract seemed to have catalyzed demand, pushing up token prices.
Feature image from Canva, chart from TradingView