Polygon (MATIC) has recently experienced a significant surge in its price, driven by several key factors that have caught the attention of traders and investors alike. These factors, including a court ruling in favor of XRP and the increasing activity of decentralized applications (Dapps) on the Polygon Network, have contributed to MATIC’s impressive rally. Furthermore, the highly anticipated launch of Polygon 2.0 has added to the excitement surrounding this cryptocurrency.
A recent United States District Court ruling declared that XRP is not a security, which has broad implications for alternative cryptocurrencies. This decision is particularly relevant for MATIC, as it was classified as a security by the U.S. Securities and Exchange Commission (SEC) during its legal battle against Coinbase. The SEC’s classification resulted in a significant drop in MATIC’s price. However, the court ruling provides hope for MATIC and other cryptocurrencies, signaling a positive development for the entire industry. Moreover, Ethereum, which serves as the infrastructure for the Polygon Network, also faced similar concerns regarding its status as a security during its ICO phase.
The activity of Dapps on the Polygon Network has seen tremendous growth in recent weeks, further bolstering the price of MATIC. This surge in Dapp activity suggests that the network is emerging as a preferred scalability solution for the Ethereum network. According to data from DappRadar, the number of active Dapps on Polygon has increased by an impressive 47% in the past month. These Dapps span various sectors, including interoperability, NFT platforms, Web3, DEX exchanges, and games. This growing adoption of the Polygon Network by Dapps bodes well for the future of MATIC.
On July 13, the Polygon development team proposed a token upgrade that could have significant positive implications for the price of MATIC. This upgrade, if approved by the community, would allow holders to validate multiple chains and result in a rebranding from MATIC to POL. The Polygon 2.0 upgrade aims to support multiple chains while maintaining security and introducing incentive streams for validators, including zero-knowledge proof generation. The successful launch of this upgrade could further drive up the price of MATIC.
The total value locked (TVL) on the Polygon Network currently stands at $1 billion, indicating a strong demand for this second-layer scaling solution. Importantly, the TVL has grown from $878 million in the previous month, highlighting the increasing utilization of the network’s processing capabilities. While the impact of the proposed Polygon 2.0 upgrade is yet to be seen, other competing solutions like Arbirtrum (ARB) and Optimism (OP) are also experiencing growth. Moreover, privacy implementations utilizing zero-knowledge proofs may capture a significant market share due to their unique features not currently matched by the Polygon Network.
With the recent surge in price and positive developments surrounding MATIC, there are no apparent barriers preventing it from reclaiming the $0.90 support level observed before the SEC’s action against Coinbase. However, investors are likely to tread with caution and await further confirmation of these developments before expecting a more consistent bullish momentum for MATIC.
The rally in the price of MATIC can be attributed to various contributing factors, including the XRP court ruling, the growth of Dapps on the Polygon Network, and the anticipation of the Polygon 2.0 upgrade. These factors have generated enthusiasm among traders and investors, indicating a growing demand for MATIC. However, it is important to remain attentive to future developments and their potential impact on the price of MATIC in the ever-evolving cryptocurrency market.