Polygon, the leading Ethereum scaling network, has experienced a remarkable surge in its native token, MATIC, witnessing a 27.7% increase in the past week and reaching an impressive five-month high of $0.9250. This surge is attributed to heightened trading activity, positive market sentiment, and anticipation surrounding the upcoming Polygon 2.0.
Driving Forces: Positive Sentiment and Innovative Developments
Polygon, a multi-chain platform, has been at the forefront of providing scalable solutions for Ethereum. Its offerings include proof-of-stake (PoS) sidechains, zero-knowledge (ZK) rollups, and chain development kits, all aimed at delivering faster, cheaper, and more secure transactions for both users and developers.
According to a quarterly report by Nansen, Polygon has demonstrated network resilience amid the increasing demand for layer-2 alternatives. In Q3 2023, Polygon PoS, the platform's most popular scaling solution, maintained a stable user base, with daily active addresses ranging from 275,000 to 466,000.
The report highlighted that Polygon PoS showcased lower gas fees and higher transaction volumes compared to Ethereum during the same period. The average daily gas fee for Polygon transactions stood at a mere $0.05, while Ethereum's fees fluctuated between $1.95 and $15.
Meanwhile, Tether and USDC emerged as the most utilized tokens on Polygon PoS, with 1.6 million and 1.32 million users, respectively. Notably, Chainlink led the pack as the most transacted token on Polygon PoS, with an impressive 47.08 million transactions.
Polygon Labs: Advancing ZK Technology
Polygon Labs, the research arm of Polygon, has been diligently advancing zero-knowledge (ZK) technology. Key frameworks, such as Polygon zkEVM and Polygon Chain Development Kit (CDK), empower developers to build their own ZK layer-2 chains on Polygon.
Launched in March, Polygon zkEVM has already attracted $100 million in total value locked (TVL). The open-source Polygon CDK, released in August, simplifies the creation of ZK layer-2 chains, with projects like Canto, Astar, Gnosis, and IDEX announcing their adoption of Polygon CDK for their ZK solutions.
Polygon Labs is now focusing on Polygon Miden, a ZK-rollup promising a faster, more secure, and more cost-efficient network. Anticipated to launch its testnet in Q4 2023, Polygon Miden is poised to contribute significantly to Polygon's innovative ecosystem.
Institutional Interest in MATIC Skyrockets
IntoTheBlock reports an astounding 3,800% spike in whale and institutional demand for MATIC over the last 30 days. Santiment data reveals that wallets holding 100,000 to 10 million MATIC have accumulated 42.88 million coins since October 24. In a single day, there were 161 MATIC transactions of $100,000 or more, marking the highest since July.
MATIC On a Bullish Tear
On the price front, MATIC is on a tear, as mentioned at the outset. At the time of writing, the cryptocurrency has jumped by a whopping 15% since the start of the day. This rally comes after MATIC pulled back from its previous bullish streak.
Currently, the cryptocurrency is approaching the $0.9430 resistance but it’s well in overbought conditions. This could get in the way of MATIC recording a sustained move above the resistance level. However, the market is currently in an unprecedented bullish mood, which creates room for irrational volatility and disregard for resistance marks.
MATIC Statistics Data
MATIC Current Price: $0.9250
MATIC Market Cap: $8.46B
MATIC Circulating Supply: 9.25B
MATIC Total Supply: 10B
MATIC Market Ranking: #13
This article should not be taken as financial advice. It is essential to conduct research before making any investment decisions.