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Price Analysis

Polygon (MATIC) Becomes the Biggest Crypto Gainer After DEX Uniswap Goes Live on Polygon

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Uniswap, a decentralized trading exchange, became live on Polygon, the Ethereum Layer-2 scaling solution, on Wednesday, December 22. The news comes a month after Polygon co-founder Mihailo Bjelic proposed to Uniswap that the Uniswap version 3 be launched on Polygon. The Uniswap community likewise overwhelmingly supported the plan, with 72 million token holders voting in favour.

Launching on a Layer-2 platform like Polygon will relieve Uniswap consumers’ frustration with high gas fees. Furthermore, with the debut of Polygon, Uniswap (UNI) users will be able to swap tokens utilising the Polygon blockchain via Uniswap’s official interface. This year, Uniswap is one of the major DEXs, supporting approximately $600 billion in trading volumes. The rollout is also excellent news for MATIC holders, Polygon’s native cryptocurrency. Users will use the MATIC token to vote on governance issues and pay the transaction fee.

Key Takeaways (MATIC)

  • Polygon co-founder Mihailo Bjelic commented, “With this deployment, Uniswap as the flagship Ethereum project returns back to the original promise and again offers low fees and open access to everyone. Polygon’s DeFi ecosystem is the second strongest one in the industry, right after Ethereum L1. Uniswap will be a major addition to this flourishing ecosystem, given that it is an important and often used building block (aka money lego) in many modular DeFi implementations.”
  • Last week, Uniswap decisively agreed to deploy smart contracts from the protocol’s v3 version onto Polygon. Today was the last day for the deployment to be completed.
  • Holders of MATIC, Polygon’s own token that can be used to vote on governance issues as well as pay transaction fees, have reaped the benefits of the rollout. The price has increased by 35% in the last week and approximately 14% in the previous day, reaching a new high of $2.66 in the process.
  • According to IntoTheBlock statistics, the current gain has resulted in a profit for all MATIC holders. An Ethereum whale ranked second among the top 1,000 ETH wallets tracked by WhaleStats purchased 1 million MATIC tokens, totaling $2,690,000 in value.

Price Analysis of MATIC

Fear & Greed Index: 34, Fear

All-time High: $2.70

7d change: 19.58%

Market Cap: $18,352,572,712.58

Circulation Supply: 7,086,960,741 MATIC

Total Supply: 10,000,000,000 MATIC

Daily Chart Breakdown of MATIC

MATIC Daily Price analysis

Source: TradingView

The MATIC market is hurling around all-time highs. On the daily, the price is moving in a rising channel and getting rejected from the resistance of all-time high and the rising channel. A breakout above the all-time high will move the price towards the next psychological level of $3. On the other hand, if the market respects this resistance, we might see a correction towards $2.10 before a further rally.

4 Hour Chart Breakdown of MATIC

MATIC 4hPrice analysis

Source: TradingView

On lower timeframes, such as 4h, there are rejections from the resistance level of $2.7 and the rising channel. The sentiment remains the same for the 4h timeframe as well.

1 Hour Chart Breakdown of MATIC

MATIC 1h Price analysis

Source: TradingView

We can see the price using the support of the rising trendline and EMA20 on the 1h timeframe. But the recent highs built a bearish divergence that could result in a breakout below the trendline. Which, consequently, will move the price for a correction.

Final Thoughts

At the time of press, MATIC is now trading at $2.57 and is the 14th biggest cryptocurrency by market capitalization according to CoinMarketCap statistics.

I have been in financial markets since 2013. With a diverse experience of different asset classes, I trade and create educational content for Crypto, Forex and Stock Markets.

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