The crypto market is back on its bull run on Wednesday and one of the biggest gainers, besides Ethereum of course, has been Polygon (MATIC), with its price surging by over 34% over the past 24 hours. At the time of writing, MATIC/USD is trading around $0.72.

The past week has been an interesting for this L2 solution based on the Ethereum blockchain, with its value soaring by more than 110% through the past week. MATIC has also been one of the strongest gainers in the overall crypto market since the beginning of 2021, with prices soaring by more than 4,100% – far higher YTD returns than those garnered by majors BTC and ETH.

Polygon is the new name given to Matic Network starting late February, and aims to be a version of Polkadot (DOT) operating on the Ethereum for interoperability and higher scalability. The network has benefited recently from the issues plaguing the Ethereum blockchain network, such as high gas fees and congestion, as it has offered an attractive alternative for DeFi projects.

Analytics by The Block Research reveals that Polygon’s PoS has seen a higher rise in its total value locked (TVL) than its major competitors, including Binance Smart Chain, xDAI and Avalanche. The ecosystem’s growing popularity has been attributed to its incentives to the tune of $5 million as rewards for liquidity mining.

Key Levels to Watch

Technical analysis reveals more room for bullishness in Polygon, with the MACD indicator pointing to further upside in price. The next key target would be $0.98 but for this it needs to break past resistance at the $0.90 level. A failure to overcome this level could increase selling pressure and send MATIC’s price down to $0.58 and even below the $0.50 level.