In the midst of the rally in the crypto market, many crypto assets including MATIC have risen to higher heights, expanding to reach their peak and beyond. While the catalyst behind the rally may be unclear, Polygon’s (MATIC) bullish trend could be part of the upcoming zkEVM Network update. As the launch approaches, investors continue to increase the amount of funds for the asset.
Polygon is a layer-2 scaling solution built on top of the Ethereum blockchain to increase network scalability. The upcoming zkEVM network update is just one of the plans that Polygon network developers have announced to improve their layer-2 scaling solution.
According to the new Polygon founder Sandeep Nailwal tweetThe anticipated ZkEVM will arrive at the mainnet launch now that it has an official date that is everywhere.
Polygon (MATIC) Up Almost 10% In 24 Hours
During the past 24 hours, MAT has spiked in price by 8.6%, mirroring the bullish trend of other altcoins as the global cryptocurrency market capitalization is still steady above the $1 trillion mark.
The last few weeks have seen signs of MATIC rally movement up, especially since the beginning of the year. MATIC has moved from the $0.75 price tag seen late last year to $1.09 at the time of writing. Meanwhile, the 1-day chart still shows more rallies as there is still liquidity at the top to go.
Notably, MATIC is ranked the 10th most valuable cryptocurrency asset by market capitalization, according to data aggregators CoinGecko and Coinmarketcap. Polygon now has a market cap of $9.7 billion, higher than Solana with $8.8 billion but below Dogecoinwhich sits at $11.8 billion.
Although MATIC has risen to a high since the beginning of the year, it is still far from $2.92, which is seen in 2021. With the continued lack of confidence in the crypto market among investors, it is still not certain that zkEVM will be a good enough catalyst to drive the value beyond or approaching the summit.
Polygon Network User Activity Plummets
Despite the appreciation of MATIC in Value, the activity of network users has recorded a decline in the number of interactions. The number of daily users of Polygon started the year positively from approximately 404,000 visible on January 1st to 696,00 users on January 6th.
Today, however, that number has dropped by more than 10%, down to around 399,000, according to data from PolygonScan. The reason behind the plummet is still unclear, as network activity is expected to increase, due to new network collaborations with many top companies.
Last year, Facebook (Meta) added support for the Polygon network. In addition, the layer-2 scale solution recently partnered with Mastercard to launch a Web3 accelerator program to bring young music artists into the spotlight using Web3 technology and other blockchain-based innovations.
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