Polygon (MATIC) Flying: Is This Program The Primary Catalyst?
10 November 2023 - 1:00AM
NEWSBTC
MATIC, the native token of Polygon, an Ethereum sidechain, is
ripping higher, mirroring the general performance across the crypto
scene, spearheaded by Bitcoin (BTC). As of November 9, MATIC is up
roughly 5% in the past 24 hours and inching closer to July 23
highs, looking at the candlestick arrangement in the daily chart.
This upswing is at the back of rising trading volume and improving
sentiment, which has seen the token expand 64% from October lows, a
net positive for optimistic traders. The 110 Million MATIC Grant
Looking at events in the past few trading days, the MATIC rally
seems to have been catalyzed by Polygon Village’s recent
announcement. The team said it plans to distribute 110
million MATIC to projects aiming to deploy decentralized finance
(DeFi), gaming, and social media solutions on the sidechain.
Related Reading: Ethereum Price Cracks Above $2,000 As BlackRock
Eyes ETH ETF Polygon said late-stage projects can receive direct
grants of up to 2 million MATIC. Meanwhile, early-stage projects
and startups, can apply via quadratic funding grants. In this
funding arrangement, the amount of MATIC sent to a project will
directly depend on how popular the project is. Those that are
popular among crypto holders will receive more funds. Still, it
remains unclear how Polygon Labs will deal with bots when deciding
how popular a given project is. Voting will be on-chain on Polygon,
where MATIC will be the currency through which users can support
their favorite projects. Polygon Rising Stature: From POL To ZK-EVM
Over the years, Polygon has emerged as a popular scaling solution
for Ethereum, looking at statistics and total value locked (TVL),
especially in DeFi. The platform is compatible with the Ethereum
Virtual Machine (EVM). Accordingly, it allows protocols launching
on its rails to easily connect with the mainnet without sacrificing
security. By connecting with Polygon, projects can operate in a
highly scalable environment with relatively low fees. This feature
allows intensive dapps, including social media platforms or
decentralized exchanges (DEXes), to operate seamlessly. Polygon is
also transitioning and, subject to the community’s approval, will
gradually replace MATIC with POL. This token will power the broader
ecosystem, including supernets and layer-2 networks relaying on
Polygon’s infrastructure. In late October, the POL contracts went
live on the Ethereum mainnet as part of Polygon 2.0. This
transition will see Polygon integrate zero-knowledge (ZK)
technology into all its products. Related Reading: A Chat
With Paolo Ardoino: What’s Behind The Bitcoin Price Rally, New Role
As CEO, And Adoption Manta Network said it would retool and
integrate Polygon’s Chain Development Kit (CDK) in mid-October.
Doing this, the protocol migrated from the optimistic rollup it
initially launched on. Using Polygon’s CDK, Manta integrates zk
Rollup technology to settle transactions faster and confidentially.
Feature image from Canva, chart from TradingView
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