Polygon (MATIC) is one coin that, in the eyes of cryptocurrency investors, has huge growth potential. The network’s utility statistics speak for it, as well as its dynamic growth rate. The latter factor definitely influences the current movements of the asset.
Upcoming update a driving force for Polygon
While Bitcoin remains in consolidation, many altcoins are showing upward strength. Among them is MATIC, the coin of the Polygon network. On Thursday, January 27, it gained nearly 13.3%, reaching a price of $1,128 in the process. The move gave MATIC a market capitalization of $9.6 billion, pushing the coin into tenth place among the highest valued crypto assets.
The basis for this growth is very solid, and stems from an announcement shared by Polygon project co-founder Sandeep Nailwal. He informed the community that the highly anticipated zkEVM update, already has an official date. However, he decided not to reveal it. The announcement was posted on Twitter and read as follows:
“I just left the high-level zkEVM Mainnet launch committee. I can’t keep calm, people WE HAVE a launch date for the mainnet! And it’s ON TIME!”.
ZkEVM relevant not only to Polygon but also to Ethereum
The original intent of the Polygon network (formerly known as the Matic Network), was to provide scalability for Ethereum. At that time, developers focused mainly on using so-called Plasma chains. They were the ones that took care of the throughput of the mother ecosystem. However, a lot has changed since then. The combination of Polygon and Matic solutions, opened up new perspectives. Today, the network still supports the Ethereum ecosystem, but more broadly operates as an ambitious proof-of-stake (PoS) authority with individual development plans.
Polygon is currently engaged in creating so-called rollups. These come in two varieties, Optimistic and Zero Knowledge. It is these rollups that are affected by the update known as zkEVM. It aims to ensure full compatibility between all smart contracts operating in the ETH space. This is significant because the Ethereum network itself, also plans to make similar changes. Polygon’s support in this regard could be particularly important.
Huge confidence in Polygon
The Polygon (MATIC) network enjoys exceptional popularity, which it owes to its continuous development. It is worth noting that starting 2023, MATIC was nearly 75% below its ATH. This seems like a lot. Nevertheless, comparing it with the track record of other networks, which have lost more than 90% on more than one occasion, it is a clear signal that investors see potential in it, and treat any decline as a buying opportunity. Proof of this can be seen in the daily trades, which, despite the ongoing bear market, have remained steady for quite some time.