Polygon (MATIC) price made a strong bullish breakout on Wednesday as investors cheered the network’s ecosystem growth. The token soared to a multi-month high of $1.10, its highest point since April 23rd. It has soared by more than 118% from its lowest point this year.

Manta DeFi ecosystem grows

Polygon, a leading layer-2 network, came under intense pressure in 2023 as the layer-2 industry became extremely competitive. Arbitrum passed Polygon to become the biggest L2 network in terms of DeFi TVL and daily DEX transaction volume. 

The other top contenders in the L2 industry were Optimism and Base. At the same time, Polygon saw robust competition from other EVM-compatible networks like Cronos and IOTA’s Shimmer.

Despite the challenges, Polygon developers have been busy building in a bid to grow the ecosystem. In addition to the PoS, the creators launched Polygon zkEVM, CDK, and Polygon ID. 

It is unclear why MATIC price has staged a strong recovery even as other altcoins like Solana and Avalanche pulled back. A likely reason is that Manta is seeing strong performance in the DeFi industry.

Data compiled by DeFi Llama shows that the Total Value Locked (TVL) in the ecosystem rose to more than $139 million, a record high. This TVL is being led by LayerBank, a lending protocol with over $109 million in assets.

The other top dApps in the ecosystem are Shoebill, iZiSwap, Quickswap, and ApertureSwap, which have over $1 million in assets. Manta, however, claims that its network has over $250 million in TVL.

Manta is one of the top players in the Polygon and Celestia ecosystem. It was built using Polygon’s zkEVM technology, which is gaining traction among developers. The other parts of Polygon’s zkEVM are AuraSwap, Diagonal Finance, and Celer cBridge.

Many big blockchains have also embraced Polygon’s zkEVM. For example, Chainlink and Astar Network recently integrated in the platform.

Polygon MATIC price forecast

(Click on image to enlarge)

The daily chart shows that the MATIC price has been in an uptrend in the past few weeks. It has now moved above the important resistance point at $0.985, its highest point on November 14th. By moving above that level, the token invalidated the double-top pattern.

MATIC price has also moved above the upper side of the Andrews Pitchfork tool. The Average Directional Index (ADX) has pointed upwards and is above 20 while the Relative Strength Index (RSI) has risen to the overbought point of 70. Therefore, the outlook for Polygon is bullish, with the next point to watch being at $1.20.

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