Polygon, a layer-2 scaling solution on the Ethereum [ETH] network showcased some unprecedented rise. And, this movement was indeed enough to create headlines across the crypto community. So what exactly happened with the layer 2 scaling solution?
Decoding the mystery
Polygon’s native token MATIC has been rallying all week, showcasing strong on-chain fundamentals. Polygon jumped more than 60% in the past week itself.
A thing to be considered was the hike in active addresses as compared to the token’s price.
Address activity on the Polygon network remained high and triggered a rally. This further showcased some divergence from the altcoin’s price action. Needless to say, the development activity saw a similar trigger.
Source: Santiment
Whale activity on the MATIC network also increased steadily- a good sign for holders on the Polygon network. In fact, the token made a comeback in the top 10 by trading volume among the 100 biggest ETH whales.
JUST IN: $MATIC @0xPolygon is back on top 10 by trading volume among 100 biggest #ETH whales in the last 24hrs 🐳
Check the top 100 whales here: https://t.co/N5qqsCAH8j
(and hodl $BBW to see data for the top 5000!)#MATIC #whalestats #babywhale #BBW pic.twitter.com/G4LurNOF0r
— WhaleStats (free data on crypto whales) (@WhaleStats) July 21, 2022
All thanks to you
So what led to these bullish developments. Well, the anticipation of the major ZK announcement.
Polygon has launched a proprietary Ethereum-compatible scaling solution called zkEVM, termed ‘the future of Ethereum scaling’.
It inherited the security of Ethereum while increasing throughput and radically reducing fees.
Meanwhile, it is also fully compatible with the Ethereum Virtual Machine (EVM).
We are proud to announce a giant leap forward for Ethereum scaling and ZK innovation.
Introducing Polygon #zkEVM, the first EVM-equivalent ZK L2.
Today we’re releasing a complete implementation, fully open-source, and we’re just getting started.
[1/6] pic.twitter.com/P929DRCT1y
— Polygon – MATIC 💜 (@0xPolygon) July 20, 2022
“It’s just like using Ethereum, but with the groundbreaking scaling power of ZK tech,” Polygon stated via an announcement. Furthermore, it noted,
“You can build on Polygon zkEVM the same way you would on Ethereum. You can deploy any Ethereum smart contract. Any tooling that works with Ethereum will work on Polygon zkEVM.
Do anything you would do on Ethereum, for lower cost and at greater speeds, and have it verified on the Ethereum network via a ZK validity proof. It’s Ethereum, but with ZK scalability.”
Indeed, a major milestone was unlocked following this development. Not to forget, the network also received support from the Walt Disney Company as covered in the past.
Could this help the respective token create an all-time high (ATH,) maybe, or maybe not.
But it’s certain that MATIC’s price journey upwards won’t be an easy ride. Even at the time of writing, the #13 ranked token suffered a fresh 3% setback as it traded around the $0.88 mark.