Polygon (MATIC) At Risk Of Dropping To $1 Despite Mercedes Benz Deepening Partnership

The Polygon (MATIC) price has come under heavy pressure in the last two weeks after showing an extremely bullish performance until mid-February. However, the sentiment in the broader crypto market, a supposed downtime of the Polygon blockchain and the layoff of 20% of all employees at Polygon Labs have hit the price hard.

Timeline of Polygon

Polygon [MATIC] noted strong gains on the price charts in mid-February, a development which highlighted that sentiment was positive towards the asset at that time. Since then, however, the market has turned and those gains have been fully wiped out.

The launch of Reddit Avatar Non-Fungible Tokens (NFT) on Polygon, with their subsequent record sales, somewhat settled the question of whether or not NFTs are dead. As a bonus, it proved the importance of networks in the crypto-world.

Xrp rose higher in Tuesday's session, as prices continued to move away from a long-term support point. Overall, sentiment in cryptocurrencies remained largely bearish, with the global market cap down 0.34% as of writing. Polygon was also in the green at the time of writing.

With the increasing bearishness in the crypto market, the Matic coin price is extending its ongoing correction phase initiated in February mid. So far a V-top reversal from $1.53 has tumbled the coin price by 26.65% and has eradicated 50% of gains the coin holders witnessed during the January rally.

The Polygon blockchain network has partnered with Mercy Corps' investment arm, Mercy Corps Ventures, to bring blockchain solutions to marginalized and low-income communities in developing regions.

Jordi Baylina, a core developer of Polygon zkEVM, an upcoming L2 scaler on zero-knowledge proofs (ZKPs), has responded to the co-founder of Solana, Anatoly Yakovenko, who said that provers have not been able to keep up with the chain developments.

Ethereum's leading layer 2 blockchain, Polygon is struggling with a stubborn bearish wave since early last week. MATIC price is down 0.9% on the day to exchange hands at $1.25 at the time of writing, while bulls work around the clock to prevent losses from extending below support established at $1.20.

Key Points: Daehong Communications, a key player in the Lotte NFT project, has partnered with the global blockchain platform Polygon to expand its NFT offerings worldwide. This partnership will enable Daehong Communications to accelerate the development of various NFT projects by collaborating with leading domestic and foreign companies.

The parabolic growth in MATIC coin price has recently marked a new local top at $1.54. Furthermore, with increased bearishness in the crypto market, the coin price turned down from this peak and tumbled 22% down to reach the $1.2 mark.

Polygon [MATIC] recently made a major announcement that will likely increase the network's capabilities and offerings. The blockchain has partnered with Eclipse to launch a new software that will allow Solana apps to migrate to Polygon or go multichain.