Over the past few days, the Polygon (MATIC) price has been displaying positive signals, indicating a bullish trend. The altcoin was able to surpass its previous price resistance level, showcasing its growth potential.
In the last 24 hours, MATIC experienced a surge of 13% in its weekly chart, and the trading volume has also increased by 65%, according to the data from CoinMarketcap.
Like other altcoins, MATIC witnessed a consistent drop in price over the past week. However, starting on February 15, the cryptocurrency market began to show signs of recovery, leading MATIC to follow suit.
Currently, the coin has experienced a price increase of 6.1%, trading at $1.47, displaying a stable movement since breaking past the $1.30 resistance level.
The next immediate hurdle for the altcoin is at $1.44, and once surpassed, it can potentially reach $1.46 before a retracement takes place.
In case of a price correction during subsequent trading sessions, local support for MATIC stands at $1.38, followed by $1.30. However, a fall below the $1.30 level could result in the cryptocurrency dropping further downside rides.
Polygon (MATIC) Price Driving Factor
The recent surge in the price of MATIC can be attributed to the announcement of the beta version of its zero-knowledge Ethereum Virtual Machine (zkEVM), which is set to launch at the end of March, according to a report.
This move positions Polygon to gain an advantage over competing technologies, such as zkSync and Scroll, by being the first to launch a public mainnet.
Zk-based roll-up technology is widely recognized as the most effective scaling solution, particularly in comparison to less secure optimistic-based roll-ups like Arbitrum and Optimism, which are “fraud-proof.”
A malicious transaction on an Optimistic Roll-up can remain valid for up to seven days or more before being reversed, giving zk-technology a competitive edge.
The upcoming Shanghai upgrade in March is likely to shift the Ethereum community’s focus on Liquid Staking Derivatives to layer-2 networks, with Ethereum Improvement Proposal 4844 reducing the cost of L2 roll-ups by 10-100-fold.
As a result, a working zk-based roll-up solution is likely to attract new projects to the Polygon ecosystem, as per the report.
Although the growth in Polygon’s decentralized finance (DeFi) ecosystem has slowed down, the upcoming launch of the zkEVM has created a bullish narrative in the market, and the team’s efforts in the Web3 space show promising signs of increased activity.