Recently, on Feb. 26, MATIC’s price surpassed $1.05 for the first time in 2024, indicating a positive trend in the Polygon network activity. This surge aligns with the booming defi market, hinting at potential bullish momentum in the near future.

Defi Market Boom Boosting MATIC Price

Investors are shifting focus to risk assets amidst expectations of Fed rate cuts. The soaring S&P 500 and bullish earnings reports from companies like NVIDIA have led to significant capital inflows into the defi markets within the crypto sector.

Layer-2 networks such as MATIC, Optimism (OP), and Arbitrum (ARB) are at the forefront of enabling decentralized finance activities like lending, borrowing, and payments.

Last week, Optimism almost reached a new all-time high, while MATIC hit a six-month peak of $1.05 on Feb. 27. TradingView’s total defi market cap charts show a 43% increase in total defi market capitalization in February, closely mirroring MATIC’s 42% price growth during the same period.

Polygon Network Activity Reaches 5-Month High

Recent data from Santiment reveals that Polygon’s Daily Active Addresses (DAA) hit a five-month peak of 427,000 on Feb. 25, indicating a surge in user activity on the network. This high level of activity signifies strong demand for the services offered on the Polygon network.

With the defi market gaining traction and Ethereum liquidity staking receiving historic deposits, MATIC is well-positioned to capitalize on the bullish momentum in the Layer-2 scaling projects space.

MATIC Price Forecast: Targeting $1.20

Market trends suggest that MATIC’s price could reach the next target of $1.20, with initial resistance around $1.10. IntoTheBlock’s data shows that a significant number of addresses are holding MATIC at an average price of $1.11, potentially looking to take profits.

If the defi market continues to grow, MATIC’s price rally could surpass $1.20. Despite potential short-term fluctuations, overall sentiment remains positive for MATIC and other Layer-2 token markets.

As the defi market gains more traction, MATIC’s value could see further appreciation in the coming weeks. Stay tuned for more updates on Global Crypto News.

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