The price of the native token of the Polygon network, $MATIC, could soon surge if it manages to break through a crucial supply wall that has seen 30,000 addresses purchase 1.15 billion tokens around a specific area.
According to popular cryptocurrency analyst Ali Martinez, MATIC is close to the $1.19 to $1.29 price range, in which a total of 1.15 billion MATIC have been purchased by a large number of addresses.
Polygon, a layer-2 scaling solution for Ethereum, has garnered a significant amount of attention and investment as the world of decentralized finance (DeFi) continues to evolve. It currently has over $1.15 billion in total value locked (TVL) in DeFi applications, behind Arbitrum, BNB Chain, TRON, and Ethereum.
According to the analyst, it could see a potentially significant breakout if t manages to break through the crucial supply wall ahead. The analyst pointed out that a sustained daily close above the resistance level could be the catalyst for a major price breakout, with a target of $1.80 per MATIC token.
There are several factors contributing to the increased interest in MATIC, with the most significant being the ongoing scalability issues that plague the Ethereum network. As more projects and applications are built on Ethereum, the network’s capacity becomes increasingly strained.
This has led to slower transaction times and higher fees, causing developers and users to seek alternatives. Polygon’s layer-2 solution offers a viable option, enabling projects to scale seamlessly without sacrificing security or decentralization.
As CryptoGlobe reported, data from the blockchain has recently shown that around $109 million worth of MATIC had been sent to wallets belonging to leading cryptocurrency exchange Binance, suggesting an impending sell-off. The cryptocurrency’s price held, and managed to rise along with the rest of the crypto market since.~
Notably, Polygon Labs introduced the Mainnet Beta for its Polygon zkEVM, an Ethereum scaling solution that significantly reduces transaction costs and increases throughput, late last month.
The technology, used by major companies like Meta, Stripe, and Reddit, is now completely open-source under the AGPL v3 license, allowing developers to modify, utilize, and distribute the code. The Polygon zkEVM leverages zero-knowledge (ZK) proofs to maintain Ethereum’s security while boosting performance.
ZK-proof technology enables the grouping of transactions and their transmission to the Ethereum network as a single, bulk transaction, reducing fees for all parties involved. The high security and censorship resistance of Polygon zkEVM makes it an attractive option for developers of payment and DeFi applications.
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