Polygon (MATIC), which is currently trading at $2.20, is on the rise despite the general crypto market being sideways. Its price has risen more than 15% to $2.20 in the last 24 hour, extending its weekly gain of more than 20%.
But this price rally is against the backdrop of many factors. Let’s see what the hike is all about.
What is Polygon?
Before delving into what is causing the current MATIC bullish rally, let’s first take a look at what Polygon (MATIC) is.
In a nutshell, Polygon (MATIC) is an Ethereum token that powers the polygon Network, in other words, it’s a scaling solution for Ethereum.
Polygon will provide faster and more affordable transactions on Ethereum by using layer 2 sidechains, which run alongside the Ethereum main chains. Polygon users can deposit Ethereum to its smart contract, interact and then withdraw these tokens back to the Ethereum Main Chain.
MATIC tokens can be used to pay transaction fees or participate in proof-of–stake consensus.
Why is the MATIC market price on the rise?
Recent announcements are helping to make the current, including the recent announcements by 21Shares and IDEX to launch Polygon ETP.
Polygon announced that it will host ZK Summit next Wednesday, December 9. ZK cryptography will be the focus of the summit, which is one of Ethereum’s most promising solutions. During the summit, live demonstrations of the technology will be available.
21Shares Polygon ETP
21Shares announced Wednesday, December 1 that Polygon ETP will be launched on Euronext in Paris and Amsterdam.
Currently, 21Shares boasts of twenty crypto ETPs and will also be tracking the performance of Polygon’s native cryptocurrency MATIC.
21Shares made an announcement earlier in the year about crypto ETPs, which will track performance of Solana (Ethernet-killer Solana)
21Shares joined with Copper, an infrastructure provider based in the U.K. to provide custodial support and staking services for polygon (MATICI) ETP.
IDEX’s Hybrid Liquidity DEX on Polygon
IDEX, a San Francisco-based, decentralized exchange, is launching a V3 Hybrid LIquidity DEX on Polygon. This hybrid model will merge the traditional order book functionality along with other automated market makers’ (AMM) liquidity pools.
The merger will bring you more traditional investing tools as well as higher returns for liquidity providers. IDEX chose Polygon because of its lower transaction costs, which are often tens or hundreds of thousands cheaper than Layer 1 Ethereum blockchain.
Alex Wearn, CEO of IDEX, stated in the announcement:
“DeFi has been hamstrung by issues like gas prices, front-running and slippage since its inception, yet few solutions have truly offered answers to these problems. The novel Hybrid Liquidity design protects users from these pain points, while simultaneously generating higher returns for liquidity providers to boost the scalability of the wider decentralized economy.”
