Layer-two (L2) options for the Ethereum community have turn into a well-liked subject of debate and hypothesis on their related tokens backed the large rally seen in lots of the protocols this yr. The parabolic development of the decentralized finance (DeFi) and nonfungible token (NFT) sectors additionally led to a surge in the price of finishing up easy transfers and this prompted builders and buyers emigrate to L2-supportive platforms.
One L2 resolution that noticed its token worth rise to new highs earlier within the yr and now appears poised to make one other breakout greater is Polygon (MATIC), a proof-of-stake blockchain protocol that aggregates scalable options on Ethereum to assist a multi-chain ecosystem.
Information from Cointelegraph Markets Pro and TradingView exhibits that MATIC hit a low at $1.01 on Sept. 21, and over the previous few months, the worth has been in a gentle uptrend, bringing the altcoin above the $2 mark on Dec. 1.
Polygon’s ecosystem is increasing and proof of this may be seen within the enhance in protocol launches, cross-chain migrations, the launch of a Polygon-focused exchange-traded product (ETP) and a gentle uptick in person exercise.
One of many greatest drivers of MATIC worth and on-chain exercise has been the addition of latest protocols to the Polygon community throproject launches and cross-chain migrations.
Most not too long ago, IDEX decentralized change introduced that it might launching v3 of its change on the Polygon community, making it the primary hybrid liquidity DEX on Polygon.
Tomorrow. Roughly 12 PM PST.
IDEX v3, the primary Hybrid Liquidity DEX shall be launching on @0xPolygon.
✅ Mixed AMM + Order E book Liquidity
✅ Buying and selling Rewards + Liquidity Mining
✅ No failed transactions
✅ Actual restrict & stop-loss orders
✅ Low cost transaction charges pic.twitter.com/1nmOEzEGLW
— IDEX (@idexio) November 30, 2021
The Polygon community has seen challenge launches from NFT tasks just like the OpenBiSea NFT market and gaming/DeFi platforms like Rainmaker Video games, Harvest Finance and Jarvis Community.
Presently, the Uniswap group is within the means of voting on whether or not so as to add Polygon assist for Uniswap v3 and after a majority sure Part 1 vote on Nov. 25, the method has shifted into Part 2.
Rising institutional assist
One more reason for the bullish worth motion for Polygon has been elevated curiosity from institutional buyers. A number of exchange-traded merchandise (ETPs) for Polygon have been listed in current months, together with the Osprey Polygon Belief in September and the 21Shares Polygon ETP in November.
Polygon can also be included on the record of property being explored by the Grayscale Investments as a possible Belief candidate.
The community has additionally benefited from a $20 million funding fund launched by Wintermute, a digital asset market maker centered on serving to to bootstrap the event of decentralized purposes on Polygon.
Presently, the Polygon community is receiving elevated consideration because it prepares to host a ZK Summit on Dec. 9 the place builders will talk about the “present state and way forward for zk-STARKs and purposes of zero-knowledge proofs.”
Enhance in energetic customers and wallets
A 3rd cause for the bullish worth motion seen in MATIC has been the regular enhance of customers on the community as evidenced by the rise in pockets addresses holding a steadiness.
As proven within the graph above, the variety of Polygon wallets holding a steadiness has steadily elevated all through 2021 and is at the moment at an all-time excessive of 282,760.
Proof of the elevated exercise will also be found within the information for complete income generated from charges on the community, which has been steadily growing over the second half of 2021.
As new protocols proceed to record on the Polygon community, these stats are prone to rise if new customers proceed to make use of the platform to flee the excessive charges seen on the Ethereum community.
VORTECS™ information from Cointelegraph Markets Pro started to detect a bullish outlook for MATIC on Oct. 15, previous to the current worth rise.
The VORTECS™ Rating, unique to Cointelegraph, is an algorithmic comparability of historic and present market situations derived from a mix of information factors together with market sentiment, buying and selling quantity, current worth actions and Twitter exercise.
As seen within the chart above, the VORTECS™ Rating for MATIC spiked into the inexperienced zone on Oct. 15 and reached a excessive of 94 round 48 hours earlier than the worth started to extend by 57% over the following six weeks.
The views and opinions expressed listed below are solely these of the creator and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes danger, it is best to conduct your individual analysis when making a call.