On the 27th of January, MATIC, the native token of Polygon, recorded hefty gains overnight. According to data from CoinGecko, the price of Polygon’s native MATIC token increased by more than 8.2% over the past 24 hours. However, the overall market capitalization value of the crypto market has held steady above the $1 trillion mark. With this hefty increase in the value of its native token, Polygon became the tenth-most valuable cryptocurrency.
Now Polygon stands in the market with an overall market capitalization of $9.6 billion, surpassing Solana with $745 million. Despite this increase in the market cap value, Polygon is still below Dogecoin, the famous and leading meme coin of the crypto industry, with $11.8 billion. Polygon, which is built to improve Ethereum’s scalability, is a collection of the best scaling technologies.
Before its rebranding, Matic Network only used so-called Plasma chains to increase the throughput of Ethereum. But now, it is using the proof-of-stake network with several different rollup solutions, such as Optimistic and Zero-Knowledge varieties. However, in terms of user activity, since the start of the year, the network has dipped. The number of daily users is approximately 399,000 on the network. Despite this low number of users, Polygon has performed very well since the start of 2023, as it increased by more than 42%.
The reason behind this latest increase in price action is due to the new upcoming updates on the network, as Polygon looks set for some major updates. On the 17th of January, Sandeep Nailwal, the co-founder of Polygon, tweeted that the addition of the zkEVM update to the network will be happening soon. zkEVM update, which was initially announced in July 2022, is an Ethereum-compatible scaling solution. zkEVM will use rollups to provide compatibility with all existing smart contracts that are built on the Ethereum network. It is expected that when this new update to the network will arrive officially in the market, the value of Polygon and its native token will also increase.
