Amidst the turmoil that has gripped the cryptocurrency market, Polygon’s native token seems to be very unconcerned. Admittedly, the crypto-currency initially, like all assets subject to the turbulence of the moment, fell to around $0.31 in mid-June, which is its lowest level on several levels. However, in recent days, it seems that MATIC has managed to surf above the stormy wave that is capsizing so many tokens and companies.
Polygon, the Ethereum Killer
Last week, Coinbase issued an announcement stating that it had taken the necessary steps to allow its users to use Polygon’s support for transferring Ether, USDC and MATIC. “Coinbase customers can convert their fiat to ETH, MATIC and USDC and feed their Polygon wallet at a fraction of the cost and time, making it simple to explore more web3.” The redesign is a response to the need, according to the announcement, to reduce gas fees for transactions on Ethereum. Coinbase also wanted to make transfers between bridges easier.
Polygon is one of the networks that have been called Ethereum killers, because of their potential to compete with Ethereum especially in scalability and gas fees. In October 2021, the number of active users on Polygon exceeded the number of active users on Ethereum. This advantage is gained by Polygon because of its transaction fees which are very advantageous compared to Ethereum.
Transactions on Polygon are also, moreover, faster. So Polygon has two advantages over Ethereum: the speed of transactions and the transaction fees which are very cheap. Now that Polygon will be integrated into Coinbase, it is certain that this network will see its user base grow, which will undoubtedly have a positive impact on its native token, MATIC. According to data from DeFLamma, Polygon’s market capitalization is also growing steadily and now stands at $1.8 billion.
MATIC benefits from whale action
There is no doubt that the whales have had a lot to do with Polygon’s current market capitalization. What investors are looking for in these troubled times are projects that can survive the current crisis. With Polygon already attractive to users because of its scalability and low transfer fees, investors are betting that MATIC would still be around when this cryptocurrency winter is over. As a result, investors, especially large investors, have started accumulating MATIC.
For on-chain analysis tool Santiment, MATIC’s “whales” and “sharks” have made the choice to accumulate in recent weeks. “Holders of 10,000 to 10 million coins collectively added 8.7 percent more to their bags during this period,” Santiment’s report states.
As of this writing, MATIC is trading at $0.4824 with a 5, 53% growth in 24 hours. While this is an excellent uptrend, it is a far cry from the all-time high experienced by this cryptocurrency in December 2021, which was $2.92.
