MATIC had a favorable uptick in the last two weeks thanks to the bullish sentiments that prevailed in the cryptocurrency market, allowing it to rally back above $1. However, its bullish momentum seems to be flagging, perhaps courtesy of the slight market correction.

MATIC traded at $1.05 after a 3.59% loss in the 24 hours before the time of this press. Its weekly performance indicates that it is down by 4.18% after peaking at the $1.13 resistance level during the recent bullish surge. However, its current price level is still impressive considering that it traded as low as $0.62 just two weeks ago.

Source: Binance

Even at its current price level, MATIC has so far recovered more than 60% compared to its July lows which represent the last time that the price hit such levels since May 2021. However, the stochastic RSI suggests that the cryptocurrency is currently overbought and it also reflects the declining buying volume in the last few days.

Should MATIC investors be concerned about Ethereum’s upgrades?

MATIC’s performance in the last two weeks is courtesy of the overall bullishness that has prevailed in the crypto market during the same period. It has not had organic catalysts to boost its price performance and investors have been concerned about the future of the project because of the 2021 upgrades to the Ethereum blockchain.

Polygon, the native network for the MATIC token was created as a layer-2 scaling solution for the Ethereum network. The latter’s upgrade to Ethereum 2.0 will address the scaling limitations, potentially reducing the demand for Polygon. This might be a major concern for MATIC investors but that does not necessarily have to be the case.

Polygon’s user base is growing

Polygon has been trying to establish itself as a standalone blockchain that can support developers looking for an affordable and scalable network on which to develop their Dapps. Ethereum’s scalability challenges had a major role in fueling Polygon’s growth and so the major concern was that it would grow at a slower rate if Ethereum solved its scalability issues. Fortunately, that does not necessarily have to be the case.

Polygon managed to onboard numerous projects in the last few weeks even with the ongoing Ethereum upgrades. This means that developers are seeing Polygon’s potential not just as a layer 2 solution but also as a blockchain on which they can develop and roll out their decentralized applications. The network, therefore, seems to be doing just fine and investors, therefore, need not worry about its ability to achieve organic growth.

There are other developments that might increase Polygon’s usage. For example, it recently gained TrustWallet integration, as well as cross-chain capabilities, allowing developers and users to transfer funds between the Ethereum smart chain and the Ethereum blockchain. This kind of integration will make the Polygon network more usable and such developments will likely make it even more attractive, especially to cross-chain Dapps looking to launch on multiple blockchains. Such developments are good news because they represent more network adoption in the future, in turn providing more organic growth for the MATIC token.