Polygon: Assessing how Wintermute-backed Bebop can benefit MATIC holders

• Polygon-Bebop partnership to enhance the DEX buying and selling effectivity by way of “one-to-many” and “many-to-one” token swap instruments.  
• Can improved token buying and selling and swap effectivity on Polygon shore up MATIC’s worth?

Polygon (MATIC) continued its high-profile partnerships in November. Following offers with Reddit, Robinhood, Uniswap, Starbucks, Meta, and JP Morgan, Bebop is the most recent. Polygon’s pace and stable proof-of-stake (PoS) mannequin attracted earlier partnerships.

Nevertheless, Bebop goals to scale Polygon’s decentralized buying and selling effectivity. The advantages will embrace decrease transaction charges and lowered slippage fees.

Bebop permits customers to trade one token for an additional or a whole portfolio in a single transaction. It’s a DEX token buying and selling platform backed by liquidity supplier Wintermute.

🪙 @bebop_dex launches a singular ‘One-To-Many’ ‘Many-To-One’ token buying and selling platform #onPolygon!
This new platform, incubated by DeFi powerhouse @wintermute_t, selected #Polygon to allow low charges and a best-in-class consumer expertise. pic.twitter.com/Cacb5pZcci

— Polygon – MATIC 💜 (@0xPolygon) November 8, 2022

For a quick-moving crypto market, that’s a plus. For instance, the present financial institution run on FTX might simply enable Bepop customers to enter or exit a number of positions in a single transaction. This permits buyers to steadiness and rebalance their portfolios in a single go. 

On this regard, Katia Banina, head of product at Bebop, reiterated that, “It’s trivial to exit a number of positions and consolidate funds in a single asset.”

Such superior swap token buying and selling instruments provide advantages past value and pace. In keeping with CSIRO Data61, a blockchain structure and analytics platform, token swaps can enhance consumer liquidity and enhance interoperability between chains. 

However it additionally has drawbacks – inflexibility and lack of privateness, since token swap transactions are public. 

Nonetheless, Polygon (MATIC) buyers can reap advantages linked to community progress. A take a look at key on-chain metrics gives higher perception into the potential impression of the partnership. 

MATIC holders are cashing in on latest community progress

Supply: Santiment

In keeping with Santiment, social exercise declined barely, probably as a result of FTX contagion. 

Nevertheless, Polygon (MATIC) noticed a rise in community progress. The community progress rating elevated from 2006 on 7 November to 2117 on 8 November. It’s noteworthy that community progress correlates positively with MATIC worth, as proven.

Brief-term MATIC holders had been, subsequently, in a position to e-book features, as proven by the 30-day MVRV, which was in optimistic territory, at press time.

Supply: Santiment

Lengthy-term holders are nonetheless at a loss

Alternatively, long-term MATIC holders, nonetheless, are but to submit any important features. The 365-day MVRV was briefly in optimistic territory earlier than being knocked out by the FTX contagion.

Supply: TradingView

At press time, MATIC’s every day chart was bearish, though patrons had leverage. Chaikin Cash Movement (CMF) was above the zero mark, indicating that the bulls are barely in management. The worth motion was additionally above the EMA band, additional reinforcing bulls’ leverage. 

However the Relative Power Index (RSI) confirmed that patrons exhausted themselves and fell to the equilibrium degree. This confirmed that sellers had been gaining momentum, at press time. Curiously, MATIC was again in an ascending channel after a violent, bullish breakout final week. 

With lowered buying and selling quantity, as proven by On Steadiness Quantity (OBV), MATIC appears to be dropping shopping for strain. If the development continues, the worth might fall to $0.8710 or plummet additional to $0.7721. Nevertheless, if patrons take management after absorbing the present shocks, the following goal might be $1.26. 

The partnership between Polygon and Bepob can profit Polygon customers and buyers. The impression might be felt in the long term, contemplating the present damaging sentiment within the crypto market after the FTX contagion.