Polygon rallies +5.5% and Stacks Jumps +12% – A Quick Daily Outlook

Recently, Bitcoin faced selling pressure after rate hike expectations from the Federal Reserve entered the market on the back of hawkish comments by Fed Chair Jerome Powell. The Fed intends to begin discussions on accelerating the pace of tapering economic stimulus at its upcoming December meeting, and this news increased the expectations of a rate hike, which ultimately weighed on Bitcoin. This is because the faster unwinding of stimulus might weigh over asset prices, including Bitcoin, and more sophisticated investors will not see Bitcoin as a safe haven in such a situation, but rather as a risk-on asset.

However, STX, which is dedicated to unleashing Bitcoin’s potential as a programmable base layer, started rising during the week, despite the selling pressure that the world’s leading cryptocurrency is facing. According to analysts, there was no apparent reason for the spike in STX, but the crypto reached its all-time high on Wednesday.

Polygon is a layer-2 blockchain project that works on top of a blockchain to speed up transactions. The network aims to solve the scalability issues on the Ethereum network, which has been suffering from congestion and high fees lately. Polygon has been working on many projects that are driving the value of the native token higher. More than 3000 apps are working on Polygon, and the number of NFT and gaming projects built on the Polygon network is increasing day by day. In July, Polygon launched a $100 million fund for projects combining blockchain technology with gaming. Now the 21Shares ETP listing is expected to bring more inflows to Polygon.

Furthermore, one of the biggest drivers of MATIC’s price and on-chain activity has been the addition of new protocols to the Polygon network. IDEX v3 will be the first hybrid liquidity DEX that is expected to launch on the Polygon network. This has also been driving the value of the MATIC token higher.