Polygon’s entry into the Zero Knowledge proofs have created speculations that has led to the sudden increase in the price, though MATIC is still trading below its all time high of $2.62 in May 2021.
After the massive sell-off of December 4th, the cryptocurrencies are recovering and Polygon MATIC is the one of the top gainers of yesterday. Price of MATIC surged to a staggering 71.6% in a single day time period from $1.79 to $2.50. Though, it is trading at the level of $2.27 at the time of writing.
The staggering gain came from the speculations over the announcement of ‘zero knowledge proof’ applications to be launched on the polygon’s network on December 9, 2021 at Polygon virtual ‘zk Day’. Also, the people are becoming more aware about the Polygon as a scaling solution to Ethereum and with a minimal fee as compared to fees on the Ethereum Network. People are calling MATIC as the real ETH 2.0 at the moment.
This past August, Polygon had a merger with ZK protocol Hermez. The deal amounted to $250 million. The deal introduced ZK rollup capabilities to Polygon for the first time. In September with a partnership with audit giant Ernst & Young the zk rollup moved ahead for institutional adoption.
The zero knowledge proof is a cryptography technique in which verification can be provided for the truthfulness of a statement without revealing the data that proves it. The increasing revenue of Polygon is also considered as the factor that turned the cryptocurrency bullish.
Disclaimer: The article is meant for the educational purpose only and in no way it should be considered as financial advice. Own research on the topic is advisable.
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