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- MATIC is up by 40% as cryptocurrencies witness a rebound after a meteoric crash
- The growth of polygon’s Matic is a resultant of its efficiency & cost
- The growth further comes after polygon merged with ZK protocol
After the massive corollary crash haunted the markets, cryptocurrencies marketwide sought redemption while gaining in exemplary percentages of the many, Polygon’s Matic took to its heads and witnessed a bull rally of around 40%.
Matic surged from trading at $1.70 levels on Dec 6 to skyrocketing at $2.50 over the same day, witnessing a phenomenal gain of 40%, even when the token is trading at $2.50 levels, thawing away all the cold speculation around the token. However, it is to be noted that the price of the token is still below its all the highs seen in May where the price of the token discovered the value of $2.68.
The cause of the price increase is opinionated as the firm has called an exciting announcement scheduled to reveal itself on Dec 9. The event is set to be centred around the applications of zk-STARKs and the new zero-knowledge proofs, a kind of a method that can verify whether an assigned statement is true without revealing the data that proves it.
Regarding Polygon, it is a protocol & framework specifically used to build & connect Ethereum compatible blockchain networks & a significant part of the recent increase lies in the fact that it provides faster speeds & lower costs in contrast to Ethereum. Dean Thomas, The polygon head of institutional capital said that investors were finally awake to the fact that polygon was in essence an index fund of ETH scaling solutions.
Zero knowledge
The zero knowledge or ZK rollups is a technology that helps ethereum scale without risking the blockchain’s decentralization & security. Matter labs zk sync & starknet are the examples of the same which also have been reportedly secured a funding of $50 Million in november. Starknet was led by Sequoia capital.
Polygon too partnered with Enrnst & Young to create Polygon nightfall, an ZK rollup enchanted towards enterprise use. A spokesperson from polygon pointed out that it aims to help scale Ethereum & zk tech was its best bet to do so.
Growth
The token has also reportedly attracted various institutional investors & venture capitalists as a factorial of soaring gas prices of Ethereum which consequently resulted in projects fleeing away to other blockchains.
According to its local community papers, the blockchain has witnessed an all time high network revenue while reaching over 300,000 active IPs. Polygon also witnessed an enhanced volume of $60 million on its NFTs at the famous marketplace Open Sea.
Thomas also further stated that the blockchain was still undervalued considering the participation of users & based on apps built on the blockchain. It is also assumed that many projects in accordance with NFTs & metaverse are set to shift to polygon considering the high minting & transfer costs of its competitors like ethereum. Currently, Polygon’s Matic happens to be the 14th largest cryptocurrency in the world by marketcap.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
