Posts

MATIC'S SCALABILITY SURPRISES IN THE MIDST OF BEARISH SCENARIO

avatar of @madridbg
25
@madridbg
·
0 views
·
2 min read

Author: @madridbg, through Power Point 2010, using public domain images. Wuillianmy

Greetings and welcome dear readers of this prestigious platform, especially to the users who share their perspectives and knowledge in the @Leofinance community. Therefore, through this publication we will make a tour on the behavior that has been presented on the MATIC asset, who has achieved significant price rallies in the middle of the crypto-winter, which has allowed it to position itself in the 18th position of the best cryptocurrencies in the market.

So it is interesting to ask ourselves about the causes of this behavior, and in the first instance this rebound in its price is determined by the applicability of the Polygon network, which has come to improve the scalability problems that arise in the cryptographic market.

Consequently, in the last week the price of MATIC cryptocurrency native to the Polygon network went from 0.32$ to 0.63$ generating a substantial increase that allowed doubling its value in less than 5 days, the interesting thing is that the momentum is presented just when the value of BTC was in decline.

Screenshot on a 4-hour graph of MATIC's performance. Author: coinglass

Now, what is the fundamental analysis behind this behavior in the price, according to the bibliographic reviews assumed is due to the launching of the Polygon ID, which is an integration that allows to achieve a sovereign identity before the identity problems that were being presented at blockchain level, the same is based on ZK protocols (zk-SNARK) that allows to generate a private identity in order to achieve reliable interactions between users on the web3.

Consequently, users can use this privacy protocol and access different applications on the web3 anonymously and without restrictions, hence the Polygon network is presented as a tangible utility network that has come to solve real problems and this distinctive feature has allowed to generate a rebound in the price of its token.

A rebound that has been directly proportional to the market capitalization volume, which was over 3600 million dollars and has managed to reach 4492 million in just 3 days prior to the implementation of the protocol, which shows that fundamental analysis is what actually gives the boost to the price of an asset, either by speculation or applicability.

Other features worth mentioning are the hard work being done on data scalability issues where Polygon developers have made timely alliances for the use of PoS, SDK and edge protocols, as principles that would make possible the development of mechanisms that guarantee the operation of zero-knowledge (ZK) tests and consequently obtain a guided strategy that allows the sovereign identity in terms of decentralization.

  1. The design of the portal was made by @madridbg, using public domain images