Polygon’s MATIC Runs Higher as Company Announces DAO Plans
Aiswarya Gopan • 2 min read
Polygon’s MATIC is soaring early on Friday, making double digit gains after the company announced its plans to create a DAO to take the DeFi ecosystem forward by uniting various platforms and services using shared architecture. At the time of writing, MATIC/USD is trading at around $1.50.
Polygon is planning to leverage its $100 million DeFi fund that it set up earlier this year towards creating and maintaining the decentralized autonomous organization which can bring about improved and more transparent governance within an ecosystem. The initiative will also airdrop new DAO governance tokens to current users of Polygon’s network as work on the concept materializes going forward.
Polygon’s DeFi DAO has already received interest from several of the L2 scaling solution’s partners, including Chainlink, Aave as well as leading Ethereum-based DEXs SushiSwap and QuickSwap. According to the company’s formal announcement, “Polygon’s overarching intention is to decentralize specific internal decision-making and invite the community to have a say in the ongoing development of the Polygon DeFi sector. The venture also intends to foster greater cross-collaboration and compatibility within community projects.”
This latest development comes a few days after Polygon announced the acquisition of Hermez Network, after which its HEZ tokens will be merged into its own ecosystem. This is one of the most interesting and possibly the first complete merger of one blockchain into another, and will give the company a significant advantage in the blockchain scaling and infrastructure development space.
Key Levels to Watch
On the 4-hour price chart of MATIC/USD, moving averages and the MACD are suggesting a strong bullish bias. Although, the momentum indicators signals some selling interest as well at the moment.
Polygon’s MATIC is sitting well above the pivot point at $1.34 and the continuation of the uptrend can see buyers test the immediate resistance at $1.64. A break past this point opens the door for the cryptocurrency to take the price past the key $1.75 level.