Yerevan (CoinChapter.com) — MATIC, the native token of Ethereum-based scalability platform Polygon, caught a bullish breather heading into the new weekly session as it reclaimed a few of the upside levels that it had lost during the infamous March 19 crash.
The MATIC/USDT exchange rate climbed to $2.37 following a 218 percent rebound from its sessional low near $0.745, established on May 23. The massive rebound rally appeared almost in sync with similar moves across the Bitcoin and altcoin markets. Traders flocked back into cryptocurrency markets as the US dollar gains eased against the Federal Reserve’s plans to continue its expansionary policies, including near-zero interest rates.
Nonetheless, Polygon’s MATIC emerged as a showstopper crypto token. Many catalysts backed the staking cryptocurrency’s dramatic price rebound. CoinChapter curates the three among all as follows.
#1 Mark Cuban Backs Polygon
Billionaire investor Mark Cuban disclosed Tuesday that he had invested an undisclosed amount supporting Polygon’s multi-chain scaling solution plans. The Shark Tank host was a traditional crypto skeptic, but his exposure to a post-pandemic market made him look at the cryptocurrencies in a different light altogether.
Polygon benefited from that as it received one of its best institutional recommendations in the form of Cuban. As a result, bids for MATIC tokens surged overnight Tuesday, leading its value higher by as much as 22.90 percent in the early Wednesday hours.
Cuban was also instrumental in pumping Dogecoin prices earlier this year after announcing that his NBA team Dallas Mavericks would accept the meme cryptocurrency as payment for its sports goodies. He continues to offer support to Dogecoin alongside billionaire entrepreneur Elon Musk.
#2 Crypto Rebound
The short-term upside momentum in the Bitcoin and altcoin market also favored MATIC bulls. Last week, Musk scared traders and investors into selling their crypto assets after announcing that he would “indeed” dump his company Tesla’s $1.5 billion BTC investment. More bearish tailwinds for the crypto market came from China after its central bank imposed a ban on crypto transactions.
Nevertheless, investors with a long-term perspective decided to buy the dip against a shady macroeconomic backdrop. The Federal Reserve committed to stick to its ultra-low interest rate and unlimited bond-buying policy despite a massive uptick in inflation figures from April.
A lack of major economic events and careful sentiment ahead of Friday’s US Core Personal Consumption Expenditure–Price Index, Fed’s preferred metric of inflation, also examined the market optimism. In turn, that put safe-haven bids under Bitcoin and other hedging assets, including gold and even MATIC.
#3 TVL Pump
The total value locked inside the Polygon liquidity pools jumped by more than 16 percent in the previous 24 hours, data on DeFi Pulse showed. It reached an all-time high of $7.91 billion, noting that liquidity providers anticipated higher yields from the Polygon staking programs.
In retrospect, MATIC sidechains enforce consensus using a proof-of-stake layer. Network participants stake their MATIC tokens to participate as validators. In return, they earn staking rewards.
Meanwhile, the Polygon network requires computational resources for performing various functions. They include block validations and proof publishing.