The token is up 48% this year. The blockchain has the second most daily active users, according to one research group.
Ethereum scaling tool Polygon’sMATIC token has surged 12% over the past 24 hours, continuing its strong momentum this year.
MATIC was recently trading at $1.11. It is up 48% since Dec. 31 amid a spike in daily transactions that have made the blockchain the second largest for daily active users (DAU), according to data from Token Terminal.
The rally comes amid a January upturn in the crypto market that has seen Aptos’ APT token skyrocketing more than 400%, Fantom’s FTM jumping about 145% and bitcoin rising nearly 40%.
The Polygon platform ranks second behind Binance’s BNB chain recording 344,000 DAU’s, ahead of Solana and Ethereum.
Polygon’s announced partnerships and launches over the last month that have increased DAUs may also be behind the price increase, along with anticipation of Polygon’s mainnet launch of its zero knowledge-EVM. The mainnet launch is scheduled for early 2023. Its zk-EVM public testnet went live in October.
“We’re starting to see users and interest come back to these kinds of networks and seeing activity again,” Charles Storry, head of growth at crypto index platform Phuture, told CoinDesk.
“There’s also a lot of projects that have built on top of Polygon that haven’t released their tokens yet, which will be coming out soon and add to the already increasing activity levels,” Storry added.
Polygon currently has around $1.1 billion total value locked (TVL) according to data from DeFi Llama,
“We are seeing mass TVL increases for riskier projects and early stage applications,” Storry said. “In a bear market investors are more conservative and don't want to take on huge risk, but now prices have picked up a little, they are more open to newer and riskier ecosystems like Polygon.”
“We will see more of that come through as the market continues to pick up.”
All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.