The Polygon price has been in a tight range this week even as other altcoins have rebounded. The MATIC token is trading at $1.4750, which is about 13% above the lowest level this week. It has a market value of more than $9.45 billion and is the 19th biggest cryptocurrency in the world.
Polygon ecosystem growing
The MATIC price remarkable rally has stalled even as the number of developers in the ecosystem has risen. This performance is partly because investors have switched their focus towards Ethereum and Ethereum-killers like Solana and Avalanche.
For starters, Polygon is a layer-2 blockchain project that helps developers boost and optimize their Ethereum-built applications. The protocol was built to connecting Ethereum-compatible blockchain networks.
While it is a relatively new platform, Polygon has been relatively popular among developers. More than 400 of them are building using the network. The most widely-known platform in the ecosystem is Aave, the biggest Decentralized Finance (DeFi) platform in the world. Curve Finance, another popular DeFi platform has also embraced Polygon.
This week, Aragon Client, an Ethereum-built platform that simplifies the development of decentralized autonomous organizations (DAO) launched on the platform. The developers are using Polygon as a full-stack scaling position that helps cut costs from $500 on Ethereum to around $0.1.
Another notable developer moving to Polygon is Filecoin. Filecoin is one of the biggest blockchain networks valued at more than $7.7 billion. The network is changing the industry of file storage by making it more decentralized. In August, Filecoin and Polygon announced they were launching a bridge that will improve web3 interoperability.
The Polygon price has surged from $0.6266 in July to about $1.50 because of the user adoption and the overall recovery of the cryptocurrency industry. Still, it is about 47% below its all-time high.
Polygon price prediction
The four-hour chart shows that the MATIC price has been in a mild bullish trend recently. Along the way, it has underperformed other key Ethereum-killers. The coin has managed to move above the 23.6% Fibonacci retracement level at 1.4456. It has also risen above the 50-period and 25-period moving averages.
Notably, Polygon is attempting to move above the key resistance level at $1.5300. Therefore, with Bitcoin about to move above $50,000, there is a likelihood that Polygon too will join in this rally. If this happens, the next key level to watch will be at $1.60.