As cryptocurrencies continued to recover on Tuesday from last weekend’s mass sale, Ethereum-scale solution Polygon was among the biggest winners.
The price of MATIC rose from $ 1.79 on Monday morning to $ 2.50 over the next 24 hours, a nearly 40% gain. At the time of publication, the price later dropped to $ 2.32.
The increase came as more users became aware of Polygon’s lower costs and greater efficiency and scalability. Speculation has also risen over what the company called an “exciting announcement,” scheduled for Dec. 9 at Polygon virtual “zk-day”. The event will focus on the applications of zk-STARKs and Zero Knowledge (ZK) proofs, a kind of crypto that can check whether a given statement is true without revealing the data that proves it.
“I think investors are finally waking up to the fact that Polygon is essentially an index fund of Ethereum-scale solutions and the 800-pound gorilla in the [zero-knowledge] space, ”said Global Head of Institutional Capital Dean Thomas of Polygon.
⌛️ 2 days left …
🤩 5.9K + members signed up for #poligonzktago jam!
– Polygon | $ MATIC – We’re hiring! (@ 0xPolygon) December 7, 2021
Polygon is a protocol and framework for building and connecting Ethereum-compatible blockchain networks, offering an ecosystem with lower transaction costs and faster speeds than Ethereum.
ZK rolls are a technology that helps Ethereum scale without compromising the decentralization and security of the blockchain.
Matter Labs’ zkSync and StarkWare’s StarkNet are both examples of ZK-based Ethereum scale solutions. Both projects also closed $ 50 million in financial rounds in November, with zkSync led by Andreessen Horowitz and StarkNet led by Sequoia Capital.
Last August, Polygon merged with ZK protocol Hermez into a $ 250 million deal, introducing ZK collection capabilities to Polygon for the first time. Polygon followed in September in partnership with review giant Ernst & Young to build Polygon Nightfall, a privacy-focused zk-rollup aimed at corporate use.
“[Polygon’s] A priority is to help climb Ethereum and ZK is the biggest bet to achieve it, “a Polygon spokesman told CoinDesk.
Over the past few weeks, Polygon has also attracted interest from venture capitalists and institutional investors as Ethereum’s rising gas prices sent projects fleeing to cheaper blockchains.
In a newsletter sent to the community this morning, Polygon reported an all-time high online revenue for November and reached more than 300,000 active addresses.
– Tokenterminal (@tokenterminal) December 7, 2021
Polygon also saw a record monthly volume of nearly $ 60 million on the unbreakable token (NFT) OpenSea market last month.
“We are significantly underestimated by any metric, whether it’s daily active users, transaction volume or number of dapps built on our platform,” Thomas told CoinDesk.
Earlier this month, decentralized exchange IDEX launched its v3 on Polygon, aiming to combat high fees and unsuccessful transactions that plagued Ethereum Uniswap users.
Projects related to NFTs or the metaverse also move to Polygon due to high funding and relocation costs on Ethereum.
Oh man, I found a game! You can pay 50 MANA ($ 150 USD) to jump into a volcano! Besides, it is temporarily closed because gas prices are too high, they are waiting to launch on Polygon to reopen. Guess that metaverse also faces supply chain problems pic.twitter.com/S82tpc0zCz
– Anthony Lee Zhang (@AnthonyLeeZhang) December 5, 2021
Polygon’s MATIC token is currently the 14th largest cryptocurrency with a market cap of $ 16.2 billion, according to CoinGecko data. $ MATIC is still trading below its all-time high of $ 2.62 in May.