Ethereum Scaling Network Polygon’s MATIC Token Leads Altcoin Gains
The native crypto of Ethereum scaling network Polygon, MATIC, has been experiencing significant gains recently, with a 20% surge in the past week and reaching a 5-month high of $0.86. This increase is driven by heightened trade activity and an overall more positive sentiment in the broader crypto market. The upcoming developments, particularly Polygon 2.0, are expected to continue driving this rally further.
Polygon: Key Metrics Q3
Nansen’s latest quarterly report reveals that Polygon has demonstrated network resilience amid rising demand for layer and cheaper alternatives, as well as a “developer-friendly environment.” Daily gas fees on the Polygon PoS network experienced notable volatility during the third quarter of 2023, fluctuating between approximately $29,000 and $132,000. The daily transaction counts reached a peak of around 2.8 million transactions and decreased to a low of about 1.9 million throughout the quarter. The number of daily active addresses on Polygon PoS demonstrated consistent stability, ranging from 275,000 to 466,000.
During Q3 2023, the peak average daily gas fee for transactions on Polygon was $0.05, while gas fees ranged from $0.01 to $0.05 throughout the quarter. Tether and USDC stood out in terms of user engagement on Polygon PoS, boasting 1.6 million and 1.32 million users respectively.
ZK Efforts
Polygon Labs doubled down on ZK research this quarter with efforts such as Polygon zkEVM and the Chain Development Kit (CDK). Since its launch in March, Polygon zkEVM has attracted approximately $100 million in TVL. The CDK is an open-source codebase that enables developers to create their own customizable layer 2 chains using Polygon’s ZK technology.
Several projects have revealed plans to build ZK layer-2 solutions leveraging the new software toolkit over the past few months. Additionally, Polygon Labs is working on Polygon Miden, a ZK-rollup designed to deliver a faster, more secure network with minimal transaction costs set for a Q4 testnet launch.
Hot Take
Polygon’s MATIC token continues to soar as the network demonstrates resilience and positive growth metrics amid increasing demand for layer 2 solutions and cheaper alternatives in the crypto space.
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