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Polygon increases by 280 percent - what is behind MATIC?

 


Neither Ethereum nor Bitcoin. No, the winner of the last 30 days is Polygon. The blockchain with around 4000 transactions per second has meanwhile moved towards the one dollar mark. How much more will the coin go up?


The MATIC token, which is well known in the scene, has had a real price rally in the last 30 days. From around 0.30 US dollars it went uphill, namely just under the one dollar mark. What followed was an important announcement from the company: Polygon is now scalable using layer 2 blockchain technology, the so-called zk-Rollup.



A few days ago, a team member shared on Twitter that Polygon was working on an important feature and would soon be releasing it to the world. This caused the price to rise even more sharply, from $0.75 at the time to nearly $1.


Layer 2 scaling solutions, such as the zk-Rollup developed by the company, are intended to reduce costs and increase transactions per second for blockchains in general. Since MATIC is already considered the best EVM-compatible blockchain, this is quite a breakthrough for the developers.


The Ethereum Virtual Machine (EVM) is the environment in which all smart contracts of the Ethereum chain are executed. It allows code to be injected into a specific ecosystem, in this case Ethereum.


If a team decides to design their code in EVM, the blockchain can be transferred to Ethereum at any time. Applications can therefore easily switch from MATIC to Ethereum and vice versa. The company on Twitter:


“EVM compatibility also means you can use any ETH smart contract on the Polygon zk rollup as well. It's like using Ethereum combined with the scalability of the zkEVM.”


The rollup on the polygon network is called zkEVM.


Polygon sets an example - will the price of the blockchain continue to rise?

As data shows, there are currently 154 million addresses on Polygon: a sevenfold increase compared to July 2021. This means a stalemate with ETH, at least in this respect – the largest smart contract platform can “only” show the same number of addresses. These 154 million addresses generate approximately $350 million in transactions, every day!


As far as the DeFi area is concerned, the blockchain can now boast a Total Value Locked (TVL) of around 1.8 billion US dollars and thus ranks 6th among all cryptocurrencies.


No wonder the major DeFi platforms predominantly favor Polygon. All major players such as Aave, OpenSea or Curve have already made their platforms compatible for MATIC.


The companies find particular incentive in the compatibility with the EVM with simultaneous high transaction speed and security.


Although trust in the network is growing, only 31 percent of all users entrust their tokens to staking - hardly surprising, it only yields around 2 percent interest per year.


Should you buy MATIC?

What speaks for the token is above all the extremely fast adaptation rate and project development. Large companies like the ones listed above will continue to generate most of the revenue from the NFT or DeFi market for the foreseeable future. With the zkEVM rollups, the chain gives just one more reason for programming projects on the cheaper EVM chain.


In addition, the token is still cheap. According to the analysis company intotheblock, 80 percent of all users are still in the red, even though it has experienced a veritable price rally in the past few days . Now could be just the right moment for bold investors.


Disclaimer

All information contained on our website has been researched to the best of our knowledge and belief. The journalistic contributions are for general information purposes only. Any action taken by the reader based on the information found on our website is entirely at their own risk.

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