Polygon’s MATIC token has delivered an uninspiring performance especially in the last few days but that might be about to change thanks to a recent announcement by Coinbase, as well as other upbeat news.

Polygon was created as a scaling solution for the Ethereum network but the latter’s recent upgrades have got many wondering about Polygon’s fate. MATIC’s recent price action reflects the uncertainty around the cryptocurrency. For example, while it managed to enjoy a significant bull run during the market recovery towards the end of June, its gains were rather subdued and so has been its performance for the last three weeks.

MATIC’s performance today is encouraging as it has so far rallied by 9.9% to its current price at $1.49, although it is only up by 3.23% in the last 7 days. Its price action is still impressive when you consider that it traded as low as $0.62 in July but it still has a lot of untapped potential that is limited by its status as a scaling solution for Ethereum.

Source: Binance

MATIC is currently oversold at its current price according to the RSI despite its recent uptick, which makes it low-hanging fruit for a substantial rally especially in case of a catalyst event. The cryptocurrency will likely continue rallying at least for the next few hours courtesy of a recent announcement by Coinbase.

What Coinbase is planning with Polygon and why it could be the highly anticipated trigger

The Coinbase exchange announced yesterday through its official Twitter handle that its engineering team will integrate its exchange with the Polygon layer two scaling solution that was designed for Ethereum. The recent Ethereum upgrade that took place in August was expected to address some of the network’s issues such as scaling and high fees, but while it addressed the former, it failed to address the latter. While high fees are still a challenge, it presents an opportunity for Polygon.

The integration of Polygon with Coinbase will allow users on the exchange to access lower prices when interacting with the Ethereum ecosystem, while also leveraging faster settlements. This means Polygon will continue experiencing demand courtesy of Ethereum but this is not the only potential catalyst today.

A crypto Launchpad Dxsale network also announced hours ago that it upgraded to V.3 for Polygon, making it easier for users to mint tokens within minutes with no need for coding. More adoption and activity on the Launchpad will generate value for the MATIC token. Polygon has also increased its focus on DeFi through a partnership with a crypto project called Alliance Block. The goal of the partnership will be to bring compliance into P2P funding solutions, liquidity mining, and more.

The latest developments are proof that there is still demand for the Polygon network and this is good news for the platform’s future which has recently been shrouded in uncertainty. The above factors might also provide some potential upside for the MATIC token in the next few days and the long-term outlook is also favorable.