Polygon (MATIC) is presently connected the emergence contempt the broader crypto marketplace moving sideways. Its terms has rallied implicit 15% successful the past 24 hours to commercialized astatine $2.20 extending its play summation to much than 20%.
However, this terms rally comes against the backdrop of divers factors. Let’s spot what the hike is each about.
What is Polygon (MATIC)?
Before delving into what is causing the existent MATIC bullish rally, let’s archetypal instrumentality a look astatine what Polygon (MATIC) is.
In a nutshell, Polygon (MATIC) is an Ethereum token that powers the polygon Network, successful different words, it’s a scaling solution for Ethereum.
Polygon aims to supply faster and cheaper transactions connected Ethereum utilizing furniture 2 sidechains that tally alongside the Ethereum main chain. Polygon users tin deposit Ethereum tokens to its astute contract, interact with these tokens and aboriginal retreat them backmost to the Ethereum main chain.
The MATIC token is utilized to wage transaction fees and enactment successful proof-of-stake consensus.
Why is the MATIC terms rising?
The astir caller announcements that are contributing to the existent see the caller announcement by 21Shares to motorboat Polygon ETP and the announcement by IDEX decentralized speech to motorboat a Hybrid Liquidity DEX connected Polygon.
Besides the two, Polygon besides announced that it volition beryllium hosting ZK Summit adjacent week connected December 9. The acme volition absorption connected ZK cryptography arsenic 1 of the astir promising solutions for Ethereum. There volition besides beryllium unrecorded demos of the exertion during the summit.
21Shares Polygon ETP
On Wednesday, December 1, 21Shares announced that it volition beryllium launching Polygon ETP connected Euronext exchanges successful Paris and Amsterdam.
Currently, 21Shares boasts of 20 crypto ETPs and volition besides beryllium tracking the show of Polygon’s autochthonal cryptocurrency MATIC.
Earlier this year, 21Shares had besides an announcement connected crypto ETPs that volition way the show of Ethereum-killer Solana (SOL).
To motorboat polygon (MATIC) ETP, 21Shares partnered with U.K-based infrastructure supplier Copper to connection custodial and staking requirements.
IDEX’s Hybrid Liquidity DEX connected Polygon
IDEX, a San Francisco-based decentralized exchange, volition beryllium launching a caller V3 Hybrid Liquidity DEX connected Polygon. This hybrid exemplary volition merge the accepted bid publication functionality on with different automated marketplace makers’ (AMM) liquidity pools.
The merging volition assistance present emblematic investing tools and higher fiscal returns for liquidity providers. However, the main crushed for IDEX to take Polygon is its little transaction outgo which is typically tens to hundreds of thousands times cheaper than Layer 1 Ethereum blockchain.
In the announcement, IDEX CEO Alex Wearn said:
“DeFi has been hamstrung by issues similar state prices, front-running and slippage since its inception, yet fewer solutions person genuinely offered answers to these problems. The caller Hybrid Liquidity plan protects users from these symptom points, portion simultaneously generating higher returns for liquidity providers to boost the scalability of the wider decentralized economy.”
English (US) ·