Matic Surges 22% After Staking Goes Live on Testnet

The Matic Network (MATIC) price surges 22% today after the team announced staking goes live on testnet. Matic’s testnet shows viable proof of the concept to eager investors. Matic already saw a parabolic price action in 2019. Is another parabolic rally coming?

04 February, 2020 | AtoZ Markets – Matic was one of the strong crowd sales in 2019. It saw a parabolic price action until the misunderstanding about the Foundation’s massive token withdrawal. The positive announcement on staking going live on Matic’s testnet shows valid proof of the concept to eager investors.

Matic Is Returning to the Asset as Staking Goes Live on Testnet

Now, it seems that price surges after staking goes live on Matic’s testnet. The announcement quickly translated into 22% at 240 Sats, before correcting up to 220 Sats where it is now (at the press time). The 240 Sats was a strong resistance level on December 22nd and abruptly put an end to a relief rally after the sharp drop. This level will be a crucial resistance for MATIC to break if the token is to continue rising.

Ethereum’s scaling concerns are more serious than Bitcoin. The Ethereum blockchain distributes more data in the form of smart contracts. The announcement to switch to the PoS consensus algorithm is seen as a way for the Ethereum to mitigate these scale problems. It is also to decrease the energy consumption of the Ethereum chain.

MATIC can provide an Ethereum counterpart to the Lightning Network and help Ethereum meet much higher demand for transaction throughput. It could use primarily in combination with other scaling techniques such as PoS and Sharding.

Read More: UK FCA Revised Fee for Crypto Business Registration

Matic Price in 2019

Matic had a spectacular rise in the price last year, tripling its initial token price and rising to 0.04 cents in a parabolic bull run. The token then crashed to 50% in December, when the Matic team unlocked the tokens from the Foundation’s wallet.

MATIC’s price action was starting to suggest a pump-and-dump event. However, the team moved to explain what’s going on with volatility.

The collapse in prices appears to be a direct effect of the messages circulating and suggesting that the team was carrying out suspicious token movements. A rumour spread on Twitter that 15% of the token supply had been sent to Binance for liquidation. So, some investors speculated it was the start of an exit scam.

The team had previously announced a small release of funds, of approximately 248 million MATIC, equal to 2.5% of the supply. But MATIC used unlocked tokens to stake and secure the network, as the team explained. The 248 million tokens were also intended for investors and advisors, on whom the decision to sell was not guaranteed. After the dump, the token tied below the 230 Sats level.

But the claims were disproved by the investigation conducted on Binance exchange. Binance CEO Changpeng Zhao commented that the real reason might be the panic of anonymous traders. Zhao dismissed the latest sell-off as coming from the FUD, but also raised the question of whether exchanges should interfere with trading. 

Think we missed something? Let us know in the comments section below.

Share Your Opinion, Write a Comment