MATIC, the native cryptocurrency of the Polygon network, continues in the same upward direction that the market has taken in recent days. This Thursday (9), the price of the cryptocurrency opened the day with a drop of 7.1% and reached US$0.82.
With this, MATIC increased its weekly gains to 22% and monthly gains to 45% and broke two more marks. First, it surpassed the $0.80 resistance region. But beyond that, the cryptocurrency reached its highest single value since July.
This movement occurs in the wake of the accumulation of large investors, the whales, who continue to buy MATIC in large volumes. See how this movement could impact the price of cryptocurrency in the medium term.
Whales continue to accumulate MATIC
According to Santiment, network data shows that MATIC accumulation by whales has strengthened in recent weeks. The price rose to $0.80, experiencing a 54% increase in its market value in just three weeks.
Over the past two weeks, the largest portfolios, which hold between US$100,000 and US$10 million in MATIC, have played a significant role in reinforcing this upward trajectory. As the chart below shows, these addresses have accumulated more than 40 million MATIC since October 24th.
Earlier this week, on November 6, MATIC price made a significant move as it broke free from a 22-month downtrend marked by a descending cross. If the current buying momentum continues, MATIC price could potentially rise by 15%, targeting the next crucial resistance area at $0.90. Furthermore, MATIC price may rise further and break the $1 resistance.
New Polygon collaboration
Another reason for MATIC’s rise was the collaboration between Polygon Labs and the NEAR Foundation, which joined forces to collaborate on the development of a zero-knowledge (ZK) proof system. According to the companies, this system is tailor-made for Wasm blockchains.
This zkWasm prover serves as a crucial link between Wasm-based networks and the Ethereum ecosystem, including the booming Polygon CDK network. As part of this strategic partnership, the NEAR Foundation has become a lead contributor to the Polygon CDK (Chain Development Kit).
zkWasm further increases flexibility for developers using the Polygon CDK. This network has a comprehensive set of open source software components. With this, the network simplifies the creation and launch of ZK-based Layer 2 solutions on the Ethereum platform.
WebAssembly (Wasm) is a widely adopted framework for executing complex programs in web browsers. It provides performance similar to native computer applications and underpins several popular web-based services. In the Web3 domain, the Wasm Virtual Machine also functions as a runtime on blockchain platforms such as Near and Polkadot.