Polygon (MATIC) is once again back on the radar of traders and investors, as it moved up from $1.04 (₹77.73) to $1.7 (₹129.84) level in the last one month, marking a gain of close to 70% during the period. According to coinmarketcap.com, MATIC is currently the 18th largest cryptocurrency by market capitalization, having a total market capitalization of $9.2 billion as of 26th Aug 2021.
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Polygon (MATIC) on Spotlight
The MATIC coin moved up swiftly in the list of most valuable cryptocurrencies earlier this year, taking everyone in the market by surprise. And, the coin has outperformed every other big coin in the market by a huge margin. In the last one year, MATIC coin price has moved up from $0.02 to $2.78 level, recording a gain of over a whopping 15,000%.
For those who are clueless about Polygon, it’s an India-based Ethereum blockchain scalability platform that provides a framework for building and connecting Ethereum compatible blockchain networks. It combines the best of Ethereum and sovereign blockchains, thus helping Ethereum to become a full-fledged multi-chain system. Thus, improving the functionality of the Ethereum blockchain by increasing network scalability and transaction speed.
Let’s have a look at the MATIC USD price chart and what it indicates about the near term price movement.
Technical Charts- MATIC Coin Price Prediction
The analysis of the daily price chart indicates a price correction in the near term.
After making a high of $1.68, MATIC is experiencing quite a bit of selling and has corrected close to 20% in three trading days. Both MACD and RSI are indicating weakness in prices in the near term.
The 50 Day EMA, which also coincides with the 38.2% level in the Fibonacci retracement, will act as strong support and is unlikely to break below that level easily unless there is a weakness in the broader market. If it breaks below the line, then the next strong support levels as per Fibonacci retracement are $1.15 (50%) and $1.02 (61.8%).
Keep a check on the trading activity level on the CoinSwitch Kuber App, which shows the percentage of buyers and sellers in the market and helps to understand the market sentiment.
MATIC Coin News- Polygon Acquires Hermez Network
In the quest to improve its product suite, Polygon has acquired Hermez Network, a zero-knowledge (ZK) cryptography-based scaling platform for $250 million.
For Polygon, it marks their foray into the ZK solutions, which was in their strategic focus for quite some time.
“This merger is our first big foray into the ZK scaling field after we publicly announced ZK-based solutions as our strategic focus moving forward.” Polygon said in a statement.
The zero-knowledge proof in blockchain offers more anonymity and better privacy protection to users, which the current blockchain systems lack. Its use cases include- messaging, authentication, storage protection, sending private blockchain transactions, democratizing vote verification, security of sensitive information, etc.
Knowing its significance and potential, Polygon has committed to invest $1 billion to develop ZK-based solutions.
Other notable partnerships include a tie-up with crypto-friendly neo bank, Cashaa and with Infosys, where Polygon will be running a validator node on the MATIC network mainnet.
Another BIG question. Will Polygon be relevant after the launch of ETH 2.0?
For most of us, the general understanding is, after ETH 2.0 goes live, Polygon will be rendered useless. So, here is what the founders of Polygon have to say on the matter.
“Let’s think of it as the supply of scalability. At the moment it (scalability) goes up on Ethereum, the demand is already there. It will grow immediately and you will end up with the same bottlenecks.”
“The demand is 1,000 X than where we are. You will need L2 scalability”
Now you know how Polygon is playing a crucial role in the development of the crypto and decentralized ecosystem. And, making everyone optimistic about its growth potential.
P.S: KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing.