The Polygon (MATIC) price held steady on Monday even after the developers announced a major deal with DraftKings. The MATIC price is trading at $1.4965, which is slightly below the weekend high of $1.6285.
Polygon and DraftKings partnership
Polygon is the biggest layer-2 blockchain project in the world. MATIC, its native token, has a market capitalisation of more than $10 billion, making it the 21st biggest token in the world.
Polygon helps developers to optimise their Ethereum-built applications. It does this by solving some of the biggest challenges that Ethereum faces such as slow speed, scalability, and higher transaction costs.
To date, there are hundreds of projects that have been built using Polygon’s platform. Some of the most popular ones are Curve, Aave, and SushiSwap. In total, all these applications have a total value locked (TVL) of more than $4.5 billion.
On the other hand, DraftKings is one of the biggest betting companies in the world. It has a total market capitalization of more than $20 billion and is in the process of buying Entain for about $22 billion.
Now, DraftKings and Polygon are partnering in a bid that will see the former use Polygon’s technology. Precisely, DraftKings will use Polygon to power its Marketplace service. DraftKings will also become a validator of Polygon’s nodes. Validators are parties in a proof-of-stake network that are given the chance to verify blocks. In a statement, DraftKings CEO said:
“Scalability and sustainability remain among the critical challenges of blockchain technology, so as we lay the groundwork today for the vision of DraftKings Marketplace tomorrow, the vast insights and proven products from Polygon around scalable solutions are invaluable.”
The announcement is a major validation of Polygon and could help to boost the MATIC price. For one, Polygon is fast becoming a leading player in the NFT industry.
MATIC price prediction
The daily chart shows that the MATIC price has been in a narrow range in the past few weeks. The price has struggled moving above the key resistance level at $1.7860. It is also a few points above the 25-day and 50-day moving averages.
It is also slightly below the 50% Fibonacci retracement level. Therefore, at this point, the overall outlook of the Polygon price is neutral. A bullish view will only be confirmed if the price manages to move above the resistance at $1.7860.