Polygon’s MATIC Token Surges 11% in a Week – What’s Next?
The cryptocurrency space has seen remarkable growth in the last 12 months, and the popularity and expansion of the industry are still strong. The latest example of this success is Polygon (MATIC), a Layer 2 scaling solution that has seen its market cap increase by 11% in the past week. Polygon is now being talked about as the next big thing in cryptocurrency and blockchain technology, so what makes Polygon so appealing? Here’s what you need to know and how you can join in on the success.
What Is Polygon (MATIC)?
Polygon (MATIC) is a Layer 2 scaling solution that enables developers to easily create new blockchains, dApps, and blockchain-enabled applications while leveraging Polygon’s low gas fee. Polygon combines the Plasma Framework and the proof-of-stake blockchain architecture. The Plasma framework used by Polygon was proposed by the co-founder of Ethereum, Vitalik Buterin, and allows for the execution of scalable and autonomous smart contracts. The current global ranking of MATIC, the native token of Polygon, is #10, with a market cap of almost $10 billion and a 24-hour trading volume of over $850 million.
Furthermore, the daily active users of Polygon have recently surpassed those of Ethereum, with Binance Chain as the top blockchain for daily active users, with almost 800,000 users, according to Token Terminal. Polygon is now in second place with 340,000 users, and the metric has increased by 21% over the past two weeks.
Polygon’s Ecosystem Shows Major Growth
The recent launch of Covo Finance on the Polygon network has garnered much attention from the MATIC community. Covo Finance is a cutting-edge decentralized spot and perpetual swap exchange that enables users to trade many cryptocurrencies, including Bitcoin, Ethereum, and other popular assets. The platform offers a unique trading experience with low-fee swap trades and leveraged trading of up to 50x, making it an attractive option for traders looking for an alternative to centralized exchanges.
One of the significant advantages of Covo Finance is its decentralized structure, which allows users to trade cryptocurrencies directly from their crypto wallets. Additionally, Covo Finance has a unique liquidity rewards mechanism, where users who provide liquidity to the platform receive a 70% reward from all leverage trading and trading fees. The liquidity is added in a multi-asset pool called COVOLP, which comprises 50% stablecoins and 50% of other currencies, such as Bitcoin, Ether, Matic, and Chainlink. Users can provide liquidity using any of these top currencies. This pool acts as a counterparty to traders on the Covo platform, and money for trades for leverage is sourced from the liquidity pool.
Polygon (MATIC) will soon upgrade to zkEVM
Zero-knowledge proof technology, or ZK, is employed to publicly verify the accuracy of transactions made on the Ethereum blockchain. The upcoming update to the network and potential application of zero-knowledge proofs will also contribute to Polygon’s (MATIC) success and increase its value. The update, known as zkEVM, is an Ethereum-compatible scaling solution that uses rollups to provide compatibility with all existing smart contracts built on the Ethereum network.
This update promises to resolve problems with previous versions of ZK-rollups and is seen as an essential step forward for Ethereum-based applications. The zkEVM update is expected to roll out soon, and investors anticipate that this update will add increased value to Polygon.
Polygon’s Matic is seen by many as an up-and-coming force in the cryptocurrency space, and with its 11% growth in just the past week, it is evident that there are high hopes for this project. Its combined Ethereum-based application framework, impressive scaling specifications, and the upcoming updates to the network have made it an attractive investment to many. The Polygon price will only continue rising as it becomes more widely adopted.
The post Polygon’s MATIC Token Surges 11% in a Week – What’s Next? appeared first on Analytics Insight.