CRYPTOsauce.news

Polygon Hits All-Time High, Surpasses Ethereum Network In Several Key Areas

Polygon (MATIC), a layer two network designed for scaling and application infrastructure development on the Ethereum (ETH) network, was one of the most popular digital assets throughout the entire crypto market in December. From a spike in active addresses holding or trading MATIC, to Polygon’s $1 billion investment into zero-knowledge technology, co-launching a $200 million Web 3.0 social media initiative, to being utilized by Opera’s web browser to bring its decentralized apps to a wider audience, the future looks incredibly bright for the MATIC network. 

By Andrew Senior
December 27h, 2021

Outside of partnerships and new business ventures, the technological capacities of the network, especially when compared to Ethereum, are also attracting the attention of many blockchain developers. Interest in MATIC has been growing throughout the entire month of December as the token hit two new all-time highs. Since the beginning of the month, MATIC has gained more than 40% of its value and has broken into the top 15 coins by market capitalization. 

The current network activity of MATIC shows an almost identical correlation with the asset’s price with a large spike in network activity recorded during the latest rally.

If investors were looking for a warning sign among all the optimism surrounding the MATIC network, they need only set their gaze on the divergence between network activity graphs and the asset’s price. While the trend on MATIC could be considered bullish, the network activity chart is clearly showing a descending pattern.

The transactional activity and MATIC’s valuation do have some base differences given the speculative nature of the market as a whole. Rather than long term holders, MATIC seems to currently be attracting traders and short-term investors looking to catch a few percentage points of profit during the next rally but with all the positive momentum, that can quickly change. 

The daily activity users on Polygon have grown to be 50% more than Ethereum and is now utilized by all the decentralized finance apps on the Ethereum network. Combined with non-fungible tokens catching fire over the past year while drawing in everyone from game developers to sports stars to the world’s largest corporations, MATIC could be on the verge of a renewed and expanded bull run. 

Disclaimer: The information above does not constitute investment, financial, trading or any other sort of advice and you should not treat any of the content on this site such. We do not recommend the purchase, sale, or holding of any cryptocurrency or other product. None of our content should be deemed as an offer to purchase, sell, or hold a cryptocurrency or other product or service. Please consider doing your own research and prioritize consulting a certified financial professional before making any investment decisions.