MATIC moons 18% as Polygon puts feet in $50B blockchain gaming industry

Image by mohamed Hassan from Pixabay
Image by Mohamed Hassan from Pixabay

Key Polygon Takeaways:

  • Icetea Labs and Polygon announced the launch GameFi, a play-to-earn guild.
  • GameFi aims to become a hub for game projects, investors, and gamers.
  • MATIC, Polygon’s native token, gained 18.85% once news hit the wires.

NEW DELHI (CoinChapter.com)— Polygon, the interchain scalability network, has collaborated with Icetea Labs to launch GameFi, a play-to-earn guild. The announcement marks Polygon’s first step in the emerging $100bn blockchain gaming industry.

Polygon’s entry into the gaming space helped its native token MATIC jump by 16.67% on Wednesday. That pushed the cryptocurrency’s week-to-date profits to 35.11%—from August 9’s low of $1.0353 to August 11’s high of $1.3988.

As it happened

MATIC broke out of a thirteen-day (July 8-20) bear run, in line with an overall crypto market rally that began on July 21. The huge correlations between digital assets also helped push the Polygon token insofar as it reached its highest level in more than two months.

 MATIC's recent bull run began on July 21. Source: MATICUSD on Tradingview.com
MATIC’s recent bull run began on July 21. Source: MATICUSD on Tradingview.com

MATIC now trades above its 50-Day (Yellow) and 200-Day (Violet) Moving Average trendlines, showcasing its bullish bias. Nonetheless, the Polygon token still trades under a critical resistance level of $1.437.

Also Read: Cardano (ADA) ascends 20% in 24 hours as rival Ether’s rally slows down.

If the current rally continues, MATIC bulls may breach immediate resistance to target the next resistance levels at $1.498 and $1.600.

On the other hand, if MATIC pulls back, the Polygon token will find support at $1.092. In case of an extended sell-off, prices may fall to the next support at $0.895. Moreover, $0.682 also acts as critical support, as MATIC prices rebounded from it to begin their current bull run.

MATIC momentum oscillators. RSI trendline may worry MATIC traders/investors. Source: MATICUSD on Tradingview.com
MATIC momentum oscillators. RSI trendline may worry MATIC traders/investors. Source: MATICUSD on Tradingview.com

The trend-based momentum oscillator MACD forecasts a continuation of MATIC’s current upward rally. The MACD histogram bars are above zero, which means the MACD line (difference between 12-Day and 26-Day EMA) is above the MACD Signal line (9-Day EMA of MACD).

The bars on the histogram are increasing in value, indicating that bullish momentum for MATIC is strong for now.

Yet, the relative strength index (RSI) for MATIC may worry bulls. Its RSI trend is in the overbought region with a value of 70.32. Meanwhile, increasing daily trade volumes further support the Polygon token’s bullish momentum.

Blockchain’s The Name Of The Game

Blockchain gaming includes games that use some aspect of blockchain technology. Moreover, in blockchain gaming, users can trade or buy game items that have value in the real world. Play-to-earn models have injected revenue generation into gameplay, thus making gaming a viable source of income instead of just being a hobby.

Icetea Labs and Polygon’s latest collaboration, GameFi, aims to become a hub for gamers, developers, and investors/traders. In addition, it will provide gamers single-window access to all their games while tracking their performance and earnings.

Also Read: Sports NFT projects rakes in $1.8B YTD in combined sales.

Icetea Labs would function as an incubator for GameFi, establishing and operating it. The Polkadot incubator would also help recruit game developers for the project. Meanwhile, Polygon Network would provide marketing solutions, deployment on Polygon blockchains, grants, and network with other games and developers.

Polkaplay, a platform where users can create and convert content to NFTs, announced its partnership with GameFi. The social NFT and gaming platform said the collaboration would provide users a ‘unique and extraordinary gaming experience.‘.

As such, GameFi is already making waves. With the play-to-earn concept gaining popularity, the platform’s growth is likely to be exponential.

Moreover, Polygon’s scalability options would likely help game developers churn out better games, as the current blockchain gaming industry suffers from one major drawback- lustreless games that fail to engage professional gamers.

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