- Polygon (MATIC) recently fell out of CoinMarketCap’s top 20 crypto asset ranking.
- Amid a recent rally, however, the asset has made a comeback.
- The rally comes as Polygon’s Ethereum scaling mission has gathered momentum recently.
After a euphoric run in Q1 2024, MATIC, the native token of the Polygon PoS blockchain, entered a downward spiral that culminated in a drop out of CoinMarketCap‘s top 20 ranking of crypto assets by market cap in the week starting July 28—a list the asset has featured in for most of its life since its face-melting run in 2021.
Amid a recent parabolic run, however, MATIC has once again regained its place in the top 20 rankings. Can MATIC hold on this time?
Polygon (MATIC) Market Cap Jumps 30%
After three weeks, Polygon (MATIC) is back in CoinMarketCap‘s top 20 ranking of crypto assets, claiming the nineteenth spot ahead of NEAR Protocol and Litecoin. The move comes as MATIC’s market cap has surged by a staggering 30% over the past seven days from about $4 billion to over $5.2 billion per CoinMarketCap data at the time of writing. In comparison, NEAR Protocol and Litecoin boast market caps of about $5.1 billion and $4.8 billion, respectively.
Source: CoinMarketCap
The market cap jump corresponds with an over 30% jump in the price of MATIC from about $0.4 to $0.53 at the time of writing, amid what appeared to be a select altcoin relief rally earlier in the week. The rally saw MATIC, along with assets like Tron (TRX), Cardano (ADA), and Avalanche (AVAX), post gains while market leaders like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) posted losses.
Amid the rally, MATIC has broken out of a multi-month downtrend marked by several analysts, with many tipping the asset to run to at least the $1 price point in the short term.
While the reason for the recent parabolic run is unclear, it comes as Polygon’s (MATIC) Ethereum scaling vision garners increasing momentum.
MoveVM To Join the Polygon (MATIC) Ecosystem
Over the past year, Polygon (MATIC) has outlined a grand plan to infinitely scale Ethereum by horizontally connecting as many chains as possible on top of the Layer 1 chain regardless of their tech stack, consensus mechanism, or virtual machine.
At the end of July 2024, Polygon’s vision got a big boost as Movement Labs disclosed that it had chosen the AggLayer, the interoperability solution at the heart of Polygon’s aggregated chain architecture, to unify liquidity across MoveVM Layer 2 chains, the first altVM to do so. For context, MoveVM was initially developed by Meta’s (formerly Facebook) cryptocurrency arm Libra and has been adopted by new generation Layer 1 chains like Aptos and Sui.
Beyond this recent stride, Polygon is also edging closer to the highly anticipated MATIC to POL upgrade, set for September 4. Polygon has tipped POL as a “hyperproductive token” allowing holders to earn multiple rewards across connected blockchains.
On the Flipside
- The difference in market cap between Polygon (MATIC) and NEAR remains low.
- Large price jumps like the one MATIC has recently experienced are typically followed by corrections.
Why This Matters
Polygon’s (MATIC) recent resurgence suggests that investors still have significant interest in the asset despite its woeful price showing this year.
Read this for more on Polygon (MATIC):
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