News is always a great driver of rallies in the crypto space, and the most recent coin to gain some attention and love from traders and investors is Polygon’s MATIC token. As of writing the MATIC token is up 24% Friday on bullish news regarding the adoption of the blockchain by major traditional institutions and media networks.
Those gains are not isolated either, with the MATIC token rising 270% over the past four months. A look at a chart of MATIC shows the bulk of those gains made back in June/July, but the recent bullish news has created a breakout from an ascending triangle pattern, and could be the start of a new massive leg higher for the token.
Polygon and Meta Platforms
This latest pump for MATIC comes in the wake of news that Meta Platforms, the parent company of Facebook and Instagram, will be using the Polygon chain to mint and sell NFTs on Instagram. This makes Polygon the sole blockchain partner of Meta in terms of NFT minting. While there’s been no news regarding Facebook, it makes sense that Meta would expand the NFT minting to that platform in the future as well, giving Polygon access to the nearly 3 billion strong active user group at Facebook.
The latest update from Instagram states:
“Creators will soon be able to make their own digital collectibles on Instagram and sell them to fans, both on and off Instagram. They’ll have an end-to-end toolkit — from creation (starting on the Polygon blockchain) and showcasing, to selling.”
JPMorgan also Bullish on Polygon Chain
The news from Meta comes on the heels of JPMorgan successfully executing its first DeFi trade on the Polygon chain. That trade was part of a project involving Singapore’s DBS Bank, and Japan’s SBI Digital, along with Marketnode.
According the Han Kwee Juan, group head of strategy and planning at DBS;
“We wanted to show it was possible to tokenize government securities and cash within a DeFi liquidity pool. Then, using an [automated market maker], and solving for that with price oracles and market data streaming services from Bloomberg or Refinitiv, we wanted to create an institutional-grade DeFi venue which regulators would be comfortable with.”
Investors Snap up Coins with Positive Fundamentals
Despite the lingering coldness in crypto markets, this development shows investors are willing to snap up coins that have positive fundamentals and good positioning for when a new bull market emerges. News driven trading remains healthy, as evidenced not only by MATIC’s rise, but also by the 60% pop in Arweave’s AR token following news that Meta will use its decentralized storage solution to archive digital collectibles.
“The Meta announcement has brought attention to MATIC and Arweave, and traders seem to be pairing long positions in these coins with short [sell] positions in perpetual futures tied to bitcoin,” said Matthew Dibb, COO and co-founder of Stack Funds.
Dogecoin has seen a similar news-driven rally in the past week, with DOGE tokens jumping 50% following Elon Musk’s purchase of Twitter. Musk is a well-known DOGE bull and there is speculation that he could somehow use the token in conjunction with Twitter.
MATIC Technicals Look Strong
Open interest in MATIC futures has also nearly doubled over the past days, according to data from Coinglass. That indicates traders building new long positions in MATIC and is positive for a continued uptrend in the token. Increased open interest in conjunction with a rising price is indicative of a building uptrend in the price of the underlying MATIC token.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.