A recent surge in the price of MATIC, better known as Polygon, has left crypto aficionados pondering the cause of this financial flippancy. A 24% rally, all within 12 hours, saw the price of MATIC peak at $0.89 on July 13, its highest level in five weeks. Even as the initial excitement wore off, the token retained a daily gain of 15%, suggesting a growing appetite among traders and investors.
So, what underpins this unpredictable uptick in MATIC’s standing? There are several bread crumbs to follow. For starters, a landmark court ruling on July 13 dismissed claims that XRP, an alternative cryptocurrency, was a security. An earlier decree by the U.S. Securities and Exchange Commission had classified MATIC as a security—an unfavorable categorization that saw the price of MATIC plummet by 37% within five days. In light of the new ruling, MATIC now shows potential for a rebound.
Emerging trends also depict significant growth in decentralized applications (Dapps) on the Polygon Network. Data from DappRadar revealed that Dapps, spanning various sectors such as interoperability, NFT platforms, Web3, DEX exchanges, and games, have swelled by 47% in the past 30 days. This implies that the Polygon Network is gradually biting at the heels of Ethereum to become the premier scalability solution.
However, it’s not all plain sailing. The Polygon team’s proposal for a token upgrade, set to accommodate validation of multiple chains and culminate in a rebranding from MATIC to POL, awaits community approval. While the upgrade promises to enhance security and incentivize validators, a successful launch could catapult MATIC’s price even higher.
Despite these promising developments, caution is still advised. There are other competing networks, like Arbirtrum and Optimism, which are making strides in their respective areas. Privacy implementations leveraging zero-knowledge proofs may garner sufficient traction due to their unique features, which the current Polygon Network lacks.
Therefore, while prospects look promising, only time will tell if Polygon’s 2.0 upgrade will successfully catapult MATIC to greater heights. Investors are likely to await further development confirmation before fuelling more bullish momentum for MATIC. On the flip side, if the green light isn’t forthcoming soon, other networks might just swoop in and steal the limelight.
Source: Cointelegraph
