Monday, July 22, 2024

Polygon MATIC Surges As Broader Crypto Market Flashes in Green.

Polygon’s MATIC is up 19% to $1.19 in the past week as the two popular cryptocurrencies recorded significant gains. Bitcoin and Ethereum have increased 44% and 38%, respectively, in the past 30 days.

At the time of writing this article, MATIC was trading at $1.16. Polygon is described as a sidechain and runs together with Ethereum. The Polygon blockchain aims to improve on its counterpart by offering faster transactions and lower fees. It serves as a platform for interoperable blockchains.

Data suggests that a Polygon whale has been making most of the price surge. The whale received 4 million MATIC from Binance in September 2020 for around $84,000. The wallet, as per Etherscan, let go of its MATIC holdings for $5.2 million two days ago. The sale included more MATIC than the wallet’s initial purchase from the Binance crypto exchange. However, the trader still recorded a return of about 50 times the original price. But the recent uptrend is far from MATIC’s peak of $2.92 in December 2021.

It remains 60% down from its all-time high. MATIC’s recent price action is attributed to Polygon’s preparations for an upgrade that was initially announced in July 2022. Sandeep Nailwal, the Polygon co-founder, tweeted that Polygon’s zkEVM update has an official date and will launch soon. The zkEVM is a scaling solution. It is compatible with existing Ethereum smart contracts. The solution uses the cryptographic method of zero-knowledge proofs to verify large batches of transactions (rollups) more efficiently.

Mihailo Bjelic, the co-founder of Polygon, believes the update could put Ethereum on par with global payments processor Visa in terms of how quickly transactions could be processed.

All for the test.

Most Popular