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Polygon is growing by 280 percent – What’s behind MATIC?

Neither Ethereum nor Bitcoin. No, the winner of the last 30 days is Polygon. In the meantime, the blockchain with around 4000 transactions per second was moving towards the one-dollar mark. How far does the coin rise?

The MATIC token, which is well-known in the scene, has made a real price rally in the last 30 days. From around 0.30 US dollars it went steeply uphill, namely close to the one-dollar limit. What followed was an important announcement by the company: Polygon is now scalable using Layer 2 blockchain technology, the so-called zk rollup.

A few days ago, a team member announced on Twitter that Polygon was working on an important feature and would soon present it to the world. This led to an even greater increase in the rate from then $ 0.75 to almost one US dollar.

Layer 2 scaling solutions, such as the zk rollup developed by the company, are generally intended to reduce costs and increase transactions per second for blockchains. Since MATIC is considered the best EVM-compatible blockchain anyway, 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 makes it possible to feed code 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. Follow the company on Twitter:

“EVM compatibility also means that you can also use any smart contract from ETH on the Polygon zk rollup. It’s like you’re using Ethereum, combined with the scalability of the zkEVM.”

The rollup on the polygon network is called zkEVM.

Polygon is sending a signal – Is the price of the blockchain still rising?

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 β€œonly” have the same number of addresses. These 154 million addresses account for about $350 million in transactions, daily!

As far as the DeFi area is concerned, the blockchain can now have a total value locked (TVL) of around 1.8 billion US dollars and is therefore ranked 6th of all cryptocurrencies.

A picture of Defillama.com

No wonder that the big DeFi platforms prefer polygon. All major players, such as Aave, OpenSea or Curve have already made their platforms compatible for MATIC.

The companies are particularly encouraged by the compatibility with the EVM with a high transaction speed and security at the same time.

Although trust in the network is growing, only 31 percent of all users entrust their tokens to staking – it’s hardly a miracle that it only charges 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 such as those listed above will continue to generate the most revenue in the NFT or DeFi market in the near future. With the zkEVM rollups, the chain gives only one more reason to program projects on the cheaper EVM chain.

In addition, the token is still cheap to have right now. Although he has been able to put down a real price rally in the last few days, according to Analysis company intotheblock still 80 percent of all users in the loss zone. For brave investors, this could be just the right moment.

Disclaimer

All information contained on our website is researched to the best of our knowledge and belief. The journalistic articles are for general information purposes only. Any action taken by the reader on the basis of the information found on our website is done exclusively at his own risk.

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