- MATIC has staged a recovery following Bitcoin’s recent rally.
- The asset had faced selling pressure as the Polygon Foundation unloaded tokens to Binance.
- Many investors maintain that the asset is undervalued.
Over the past week, major crypto assets, including Polygon‘s MATIC, have enjoyed significant bullish momentum as Bitcoin erased a 20% correction following the approval of spot Bitcoin ETFs. However, significant MATIC exchange deposits from the Polygon Foundation stirred market uncertainty amid this rally. But with Bitcoin’s recent break past $51,000, market doubts appear to have evaporated, with MATIC now eying fresh monthly highs.
MATIC Stages a Resurgence
Over the past 24 hours, Bitcoin has bounced from U.S. CPI-induced lows at $48,300 to new yearly highs above $51,700, sparking a market rally including assets like MATIC.
Before the recent Bitcoin rally, MATIC had traded as low as $0.8432 from February 2024 highs of around $0.8856, amid risk-off market sentiment from U.S. inflation data and selling by the Polygon Foundation. According to crypto analytics platform Spot On Chain, two wallets tied to the Polygon Foundation had sent a combined 15.5 million MATIC worth $13.2 million to Binance in the past five days.
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As highlighted by Spot on Chain, these transfers of 6.5 million MATIC worth $5.4 million on February 8, and the most recent transfer of 9 million MATIC worth $7.8 million on Wednesday, February 14, coincided with MATIC price drops to around $0.82 and $0.84, respectively.
Following Bitcoin’s recent rally, however, MATIC has quickly shrugged off the selling pressure to trade close to fresh February 2024 highs at $0.8890, which could see it reclaim the psychological $0.9 price level on its journey to the top of its multi-month range.
Is MATIC Undervalued?
Unlike most major crypto assets, MATIC has yet to post noteworthy gains over the past year. For example, while some altcoins have formed new yearly highs alongside Bitcoin in February, MATIC is down 8.4% year to date (YTD), as its price remains range-bound despite predictions of a price explosion in 2024.
MATIC’s lackluster price performance comes despite several technological feats from Polygon Labs as the Polygon network moves towards a multichain future. In the most recent instance, the development team has launched a Type 1 zkEVM prover, allowing any EVM Layer 1 chain to become a ZK Layer 2 without a complete migration or significant modifications.
On the Flipside
- Despite the recent rally, MATIC is still down over 8% YTD.
- MATIC’s original tokenomics allocates 2.1 billion MATIC to the Polygon Foundation for network support through research, development, and education.
Why This Matters
MATIC holders are keeping a close eye on price, anticipating a strong bullish momentum amid development strides within the ecosystem.
Read this for more on MATIC:
Polygon (MATIC) Eyes $1 Reclaim in Post Bitcoin ETF Rally
Stay up to date with the latest in the emerging Ethereum hybrid token sector:
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