Polygon Up By 12.01% – Time To Buy Polygon Coin?
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Polygon’s native token MATIC was one of the best performers of the day, with the asset currently posting double-digit growth. So it is understandable if investors want to buy MATIC and add it to their portfolio. While the eighteenth-largest cryptocurrency by market cap looks poised to continue its uptrend, investors should take a proper look at the Polygon project before investing in the asset.
Polygon: Ethereum Scalability Infrastructure Developer
Polygon, formerly known as Matic, is a layer two scaling solution network focused on improving the Ethereum network. It seeks to address the scalability issues on Ethereum by enabling faster and cheaper transactions of Ethereum-compatible blockchains.
Polygon facilitates instantaneous transactions and boasts over 65,000 transactions per second (TPS).
The platform was founded in 2017 by the trio of Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun. Over time, Polygon has attained popularity and attracted investors and developers alike to its platform. It is not the only multi-chain scaling solution on the Ethereum network but it is the most popular. It is used in building optimistic rollups, ZK rollup chains, and independent side chains.
Polygon uses the combination of a proof-of-stake (PoS) consensus algorithm and its Plasma Framework, allowing it to execute scalable and autonomous smart contracts easily. The MATIC token is used on the Polygon network for payment services and the settlement of transactions. The ERC-20 token has had a record year so far.
Polygon launched a modular, flexible framework called Polygon SDK (software development kit) this year to support the building and development of several blockchains.
MATIC Soaring Higher In August
The MATIC price was amongst those assets that suffered substantially during the May crypto crash. However, the tide seems to have turned in the crypto market and there is a considerable bullish sentiment at present.
The MATIC token has bounced back since then and has been surging in value since August began. Starting the month at a price of $1.052, the token climbed to a high of $1.466 on August 15.
Presently, MATIC is trading at $1.49 and is up by 12.01% in the last 24 hours. This reflects a positive trajectory, and so this might be a great time to buy MATIC.
The token is ranked as one of the top 20 crypto assets in the market with a market cap of almost $10 billion.
MATIC Technical and Fundamental Analysis
The bulls are in full force on the trading chart, with MATIC trading above the 20-day moving average (MA) support price of $1.40014. Its relative strength index (RSI) is currently nearing the overbought level at 63.69. This should present investors with a unique opportunity to buy MATIC now. Market analysts believe that the MATIC token has bullish prospects.
According to Wallet Investor, MATIC will rally to $4.339 by the end of the year. The five-year forecast is even bolder, with the token expected to trade at $15.491. The MATIC token has been making double-digit gains since Polygon announced its plans to create a decentralized autonomous organization (DAO) to take the DeFi ecosystem forward.
Polygon recently announced its plan to leverage its $100 million DeFi fund that it set up earlier this year towards forming and maintaining a DAO. Polygon aims for the DAO to improve and unite various platforms within an ecosystem.
The initiative will also bring about the creation of new DAO governance tokens to current users of Polygon’s network as work on the concept materializes.
Polygon’s DAO has already received interest from several of the L2 scaling solution’s partners, including Chainlink, Aave as well as leading Ethereum-based DEXs SushiSwap and QuickSwap.
The DAO announcement comes after Polygon merged with roll-up platform Hermez Network in a 250 million deal.
According to the announcement, Hermez will be integrated into the Polygon ecosystem under the name Polygon Hermez, where it will become a part of Polygon’s line of products. This includes Polygon SDK and Polygon Avail. Basically, the entire Hermez project will be integrated into Polygon’s platform.
Polygon-Hermez merger is part of Polygon’s new strategic commitment to the ZK scaling field. Polygon has also made a $1 billion commitment to developing ZK-based systems, forming partnerships, and acquiring ZK teams.
