Jaipur (CoinChapter.com) — Polygon is slowly becoming the blockchain of choice for all decentralized finance (DeFi) activity. Decentralized exchange (DEX) Kyber Network is the latest DeFi protocol to partner up with the Ethereum layer 2 solution network. Owing to this and other strong fundamental developments, Polygon’s native token MATIC has flipped bullish on the daily technical setup.
Kyber says hello, Polygon
The Kyber team recently announced the launch of Kyber DMM (Dynamic Market Maker), their brand new liquidity protocol on Polygon. The deployment will take place on June 30.
The objective is to jack up DeFi liquidity on Polygon and Ethereum. The Rainmaker Liquidity Mining Program will prove instrumental in this regard. Over 3 months, “eligible Kyber DMM liquidity providers (LPs)” will get to earn $30 million worth of rewards. To keep Polygon and Ethereum liquidity pools flush with cash (in token terms).
For the uninitiated, liquidity mining (aka yield farming) is a favorite passive income-generating tool amongst DeFi enthusiasts. The process involves supply enough liquidity (for two tokens in a token pair) to a lend/borrow protocol to earn rewards in the form of a third token.
In this case, liquidity providers will receive DMM LP tokens as rewards. But that’s not all. As per the blog post update, they can stake these DMM LP tokens “to earn additional KNC or MATIC rewards.”
Polygon co-founder Milhailo Bjelic sounded ecstatic, commenting on the above milestone. He insinuated much more exciting prospects for the Ethereum scaling solution in the coming days in a tweet.
While Polygon is busy adding more feathers to its cap, praise from billionaire investor, Mark Cuban hasn’t stopped coming in. In a panel discussion in the recent DeFi summit online conference, Mark remarked how Polygon is “destroying everybody else” other than Bitcoin and Ethereum.
In the same talk, pointing out the exponentially rising DeFi traffic on Polygon, the Shark Tank celeb said:
“People are probably a whole lot more active on Aave and QuickSwap on Polygon than Ethereum L1 versions.”
Mr. Cuban is a strong Polygon and MATIC advocate. Also, he has been exhaustively using the platform for his DeFi transactions and recently bought a significant stake in the Ethereum layer 2 solutions.
And it’s not just him. Data from blockchain data research firm Nansen affirms rising demand for the platform.
MATIC Flips Bullish
Solid milestones and numbers have led to an upsurge in buying activity for MATIC. While the token dropped below the 20-day exponential moving average (EMA) led by yesterday’s selloff, bullish momentum is building up.
MATIC buyers have lined up to catch the dip as RSI and MACD indicators point towards a return in rallying sentiment.
The MATIC/USDT looks well supported above the 50-day MA. However, to confirm an uptrend, bulls must take out the $1.71 resistance, which the token pair hit before a bearish retreat. If the said resistance turns to a solid support, the possibility of further upside is on the cards.