MATIC price poised for recovery with 52% increase in total value locked on Polygon’s bridge
- The total value locked in Polygon’s zkEVM bridge has climbed by 52% in a single day on Thursday.
- The spike comes from addition of $3 million in MATIC and stMATIC to the bridge.
- MATIC price faces resistance at $0.9363 on its path to recover from the recent pullback.
MATIC, the native token of Ethereum’s scaling solution Polygon is likely to begin its recovery with the massive growth in Total Value Locked (TVL) onf Polygon’s zkEVM bridge. There has been an addition of $3 million in MATIC and stMATIC to the bridge since Wednesday.
Also read: Bitcoin falls below $27,600, erasing CPI-related gains
Polygon network’s zkEVM bridge notes increase in Total Value Locked overnight
Polygon network is Ethereum’s largest Layer 2 scaling solution and the protocol recently released its zero-knowledge Ethereum Virtual Machine (zkEVM) bridge. Following its launch, zkEVM bridge gained popularity in the crypto community and the TVL of assets locked on the bridge climbed 52% overnight since Wednesday.
$3 million in MATIC and stMATIC have been added to the bridge, based on data from Dune Analytics.
Polygon zkEVM TVL
Polygon’s zkEVM bridge’s TVL has climbed at a slower pace than Arbitrum and other competitors in the zk ecosystem and co-founder Sandeep Nailwal believes that crypto market participants are interested in projects that are likely to airdrop tokens to users.
Ser I think its more an insight on impact of airdrop anticipation on adoption than anything related to zk.
— Sandeep Nailwal | sandeep. polygon (@sandeepnailwal) May 10, 2023
I guess you overlooked another prominent zkL2 which has 250mn tvl cuz of the airdrop expectation.
Also good things take time. Remember Arbitrum one took 1 year+ to fully…
MATIC price likely to begin its recovery with the bullish catalyst
MATIC price is currently in an uptrend that started in June 2022. The MATIC/USD one-day price chart below shows the decline in MATIC price, the asset plunged to $0.8551. Polygon’s native token is trading below its three long-term Exponential Moving Averages (EMAs), 10, 50 and 200-day at $0.9254, $1.0351 and $1.0393 respectively.
If MATIC begins its recovery, it could face immediate resistance at $1.0351, the confluence of the 50-day and 200-day EMAs and the trendline. Next key resistance for the layer 2 token is $1.1840 a key resistance for the altcoin for over a year.
MATIC/USD 1D price chart
If MATIC plummets to support at $0.7555, a level previously seen at the beginning of 2023 – it could invalidate the bullish thesis.
The Relative Strength Index (RSI) reads 27.16, signaling that MATIC is currently oversold and there is room for recovery in the asset.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
