By Nathan Ferguson
Polygon, an Ethereum layer2 scaling solution, printed an unprecedented surge. And that was adequate to hit news wires in the cryptocurrency community. Back to our question, what happened to the L2 scaling solution?
Assessing the Mystery
Polygon’s MATIC has seen uptrends throughout the week, revealing impressive on-chain fundamentals. The alternative token gained over 60% during the previous week alone. Investors should consider the active addresses surge compared to the asset’s price.
The Polygon activity recorded increased address activity, triggering a rally. That also displayed some divergence from MATIC’s price action. Moreover, the development activity witnesses a similar trigger. Polygon also saw a steady increase in whale action, an impressive signal for holders. Furthermore, the altcoin rejoined the top ten assets by trading capacity among Ethereum’s top-100 whales.
All Credits to…
Meanwhile, what triggered the highlighted bullish developments for Polygon. Well, the ZK announcement’s anticipation contributed to the activities. Polygon has introduced zkEVM, a proprietary ETH-compatible scaling solution. It inherited Ethereum’s security while enhancing throughput and drastically reducing gas fees. Furthermore, it is fully compatible with EVM (Ethereum Virtual Machine).
Polygon said it is like utilizing Ethereum, though with the revolutionary ZK’s scaling power. It added that developers could create on Polygon’s zkEVM like they would on Ethereum. Also, users can deploy any ETH smart contracts as all tools working on Ethereum are compatible with the zkEVM. The best thing is investors will enjoy top speeds at less cost. Moreover, they can use the ZK validity proof to verify on the Ether blockchain. It’s an Ethereum network with ZK’s scalability.
True enough, this development unlocked a massive milestone for the Polygon network. Beware that the network received a boost from Disney’s partnership. Can that help the alternative coin form an ATH? Maybe, maybe not. However, MATIC’s upside journey won’t be a walk in the park. The 13th digital coin endured another 3% decline while publishing this post, changing hands at $0.88. Enthusiasts should watch broad market tendencies as they will influence MATIC’s upcoming trends.