• MATIC, the native token of Polygon, a layer 2 blockchain built on Ethereum has seen its value increase by 52% since December’s floor price of $0.75.
• The recent upswing in MATIC can be attributed to a spike in on-chain transactions, surpassing those of its anchor Ethereum network.
• Total Value Locked (TVL) on Polygon has increased 8 times in the past month and the number of daily active users is now higher than that of Ethereum.
What is Matic?
MATIC is the native token of Polygon, a layer 2 blockchain built on Ethereum which enables faster processing speeds and lower transfer costs for projects and crypto users who want to avoid exorbitant gas fees and high network congestion from the primary protocol. Layer 2 projects can process transactions off-chain while keeping them accurate with various scaling solutions such as commit chains (Polygon PoS), Polygon Miden (zero-knowledge rollup based on STARK), Polygon Hermez (open source zk-roll up) and Polygon Nightfall (privacy focused rolled integrating zero-knowledge proofs).
Why is Matic Price Rising?
The impressive performance of MATIC can be attributed to an increase in on-chain transactions that have surpassed those of its anchor Ethereum network. Data released by Token Terminal showed that daily active users on the platform had increased by 340,000 compared to Ethereum’s 320,000. According to Polygonscan, daily transactions had also risen 21%, reaching almost 400,000 within two weeks since January 1st 2021. In addition, Total Value Locked (TVL) had increased 8 times over the past month alone.
How High Can Matic Price Go?
Since hitting an all time high at $1.195 in January 2021, MATIC has been subject to some overhead pressure due to market volatility but this hasn’t stopped it from trading at $1.142 at the time of writing – representing a 52% increase since its floor price of $0.75 in December 2020. It remains unclear how high MATIC could go but with more transactions taking place than ever before, it appears that this cryptocurrency may have nowhere else to go but up!
What are Other Benefits Of Using Matic?
Aside from improved scalability over regular blockchains such as Ethereum’s mainnet protocol, using Matic also brings other benefits such as increased security through its use of Zero Knowledge Proofs for enhanced privacy; low latency for fast transaction confirmations; high throughput so multiple operations can be processed concurrently; low cost transfers between accounts; and more flexibility due to its support for various programming languages like Solidity & Vyper as well as newer ones like Rust & GoLang being added soon too!
Conclusion
Matic’s impressive performance speaks volumes about what this cryptocurrency can do once deployed properly onto mainstream networks – making it one asset worth watching out for over the coming months! With more transactions taking place than ever before and various other features providing additional benefits such as increased security & privacy along with low latency & cost transfers between accounts – we may just see Matic reach new heights very soon!