Polygon (MATIC) surged 24% today as crypto market falls

The parallel but complementary blockchain to Ethereum is up 32% in the last seven days.

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Key points

• The Polygon network is an Ethereum-compatible blockchain that enables higher transaction volumes and faster settlements at cheaper prices by allowing seamless movement of transactions on and off the ETH platform to accelerate performance.
• MATIC is the token used to pay network fees and government rewards for the Polygon Proof-of-Stake (PoS) network. According to CoinMarketCap, MATIC rose as high as $0.5115 per coin, which is an increase of 24% over the last 24 hours.
• By comparison, the broader crypto market is down half a percent to $905 billion at press time.

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Ethereum-compatible blockchain Polygon has been up and running for the past 24 hours, with its native coin MATIC rising 24% to a high of $0.5115 on cryptocurrency exchanges, adding to its rise in value. seven days of 32% according to CoinMarketCap. MATIC trading volume is also up over 120% on the day. At the time of writing, the overall cryptocurrency market was trending down half a percentage point.

The Polygon network operates on a modified Proof of Stake (PoS) process to approve transactions. PoS is believed to be more energy efficient than the proof-of-work (PoW) model currently used by both Ethereum and Bitcoin. PoW transaction approvals are based on energy-intensive raw computing power and cooling requirements.

Polygon boasts that it can handle 65,000 ETH-based transactions per second with the ability to settle smart contracts in less than two seconds for less than a penny. It’s like a series of dedicated lanes for high-speed traffic that run alongside the Ethereum superhighway with on and off ramps along it and lower toll fees. Those features not only streamline transactions through Polygon, but also reduce slowdowns and volume congestion on the Ethereum network.

Polygon is a purchase?

The MATIC coin reached its maximum trading price of $2.92 on November 27, 2021. Despite today’s intraday surge, the digital asset is 82% lower than its maximum price.

This is not a financial guide, just opinions based on observations. Each investor must conduct their own research and determine their own investment risk threshold. As decentralized finance and NFT transactions continue to drive traffic on the Ethereum blockchain, compatible alternatives that have a proven track record are likely to do well in the future, especially projects like Polygon that are currently trading at deep discounts. .