Key Takeaways:
• Polygon's MATIC has increased by around 20% today.
• JPMorgan's first DeFi transaction on the Polygon blockchain is what's causing the rise.
• Users will be able to generate and exchange NFTs on Instagram using the alternative currency.
The price of the native token of Polygon, MATIC, surged dramatically overnight, rising by over 20% over the previous day. Most significantly, MATIC has now exceeded $1 for the first time since early August. So what's causing this unexpected jump? And are we about to have a bull run?
JPMorgan Completes Its Initial DeFi Deal on Polygon
The world's largest investment bank, JPMorgan, executed its first DeFi transaction on the Polygon blockchain earlier this week due to its low transaction fees. The transaction was a part of the Project Guardian pilot program by the MAS (Monetary Authority of Singapore), which tested the use cases for asset tokenization and DeFi.
Ty Lobban, the company's Head of Blockchain Launch and Digital Assets, claims that the scalability and low transaction costs of Polygon (MATIC) were key factors in JPMorgan's decision. The exchange was carried out by issuing a tokenized Singapore Dollar (TSD) deposit for the Japanese Yen in the amount of $71,000.
This project proved Polygon's usefulness and restored the market's favorable perception of MATIC.
Instagram Begins Trading NFTs With MATIC
Instagram, a well-known social media network, has long hinted that it would one day permit NFT trading as part of its larger metaverse and web3 plans. Instagram formally stated on November 3rd that users would soon be able to produce, purchase, and trade non-fungible tokens directly on the network utilizing MATIC. Additionally, OpenSea, Solana, and the Phantom Wallet integration will be supported.
As a result of this announcement, MATIC's price has increased significantly because it will make the altcoin even more useful and enable it to be used by a larger NFT community. Sandeep, the creator of the blockchain, has also stated in a tweet that he hopes to see the cryptocurrency rank among the top three cryptocurrencies, along with bitcoin and ether.
I will not rest till @0xPolygon gets its well deserved “Top 3” spot alongside BTC & ETH.
— Sandeep | Polygon 💜🔝3️⃣ (@sandeepnailwal) November 3, 2022
No other project comes even close.
In one day, @jpmorgan & @instagram launched with @0xPolygon
This is all when Worlds first “FULLY BUILT zkEVM” mainnet is almost here, its not .. 1/2
Launch of Reddit's NFT on Polygon
MATIC is probably also benefiting from Reddit's prior initiative to introduce NFTs to Polygon's Avatar Marketplace. The well-known social media platform introduced non-fungible Polygon-based avatars in July, allowing users to transact without a cryptocurrency wallet. Reddit has been continuously airdropping MATIC NFT avatars for its most devoted users ever since.
The fact that Polygon is being used by some of the top social networking sites and, as of late, by global financial institutions proves that the altcoin is headed in the right direction for widespread adoption. In comparison to other well-liked solutions like Ethereum and Solana, the blockchain network is thought to be a more adaptable, scalable, and affordable substitute.
These elements have been the main contributors to this week's increase in the price of altcoins. We may witness MATIC enter a bull run and possibly return to its all-time high if market sentiment is positive and the token is able to hold its $1 resistance level.
