MATIC, Polygon’s own digital token, is demonstrating a remarkable upward trend in the cryptocurrency market, mimicking the overall financial landscape dominated by Bitcoin (BTC). As of November 9, MATIC has witnessed a surge of 5% during the last 24 hours, closely reaching its pinnacle witnessed on July 23, as evidenced by the daily chart’s candlestick pattern.
This bullish trend owes its propulsion to the escalating trading volume and uplifting market sentiment, catapulting the token value by 64% since the October lows—an encouraging sign for optimistic investors.
An interesting development observed over the previous trading days that appears instrumental to the MATIC rally is an announcement from Polygon Village. The team divulged their intention to allocate 110 million MATIC to projects with a focus on establishing decentralized finance (DeFi), gaming, and social media solutions on the sidechain.
Polygon stated that mature projects may directly receive grants of up to 2 million MATIC. In contrast, early-stage enterprises and startups can seek quadratic funding grants. The MATIC reward distributed to a project will be directly proportional to the project’s popularity. Projects with substantial support from crypto investors will benefit from increased funds. How Polygon Labs intends to tackle bots when assessing a project’s popularity remains unclear. Voting will utilize MATIC as the transactional currency, whereby users can back their preferred projects on Polygon.
Over time, Polygon has carved out a niche for itself as an efficient scaling solution for Ethereum, as evidenced by impressive statistics and the total value locked (TVL) in DeFi particularly. Fully compatible with the Ethereum Virtual Machine (EVM), Polygon affords protocols launching on its platform swift connectivity with the mainnet without compromising on security.
By allying with Polygon, projects get access to a robust environment that offers scalability with minimal fees. Such an environment is conducive to extensive dapps, including social media platforms or decentralized exchanges (DEXes), to operate without a hitch.
Furthermore, Polygon is experiencing a transition. Pending the community’s approval, MATIC will be gradually replaced by POL, the token set to energize the larger ecosystem, taking in supernets and layer-2 networks relying on Polygon’s infrastructure. In late October, POL contracts were activated on the Ethereum mainnet, marking the commencement of Polygon 2.0. This transition includes Polygon incorporating zero-knowledge (ZK) technology across its product list.
Manta Network announced in mid-October its decision to integrate Polygon’s Chain Development Kit (CDK). This move saw the protocol part from the optimistic rollup it initially launched on and, with the help of Polygon’s CDK, Manta integrated ZK Rollup technology to facilitate more swift and confidential transaction settlements.
