The token is up 48% this year. The blockchain has the second most daily active users, according to one research group.

Ethereum scaling tool Polygon’sMATIC token has surged 12% over the past 24 hours, continuing its strong momentum this year.

MATIC was recently trading at $1.11. It is up 48% since Dec. 31 amid a spike in daily transactions that have made the blockchain the second largest for daily active users (DAU), according to data from Token Terminal.

The rally comes amid a January upturn in the crypto market that has seen Aptos’ APT token skyrocketing more than 400%, Fantom’s FTM jumping about 145% and bitcoin rising nearly 40%.

The Polygon platform ranks second behind Binance’s BNB chain recording 344,000 DAU’s, ahead of Solana and Ethereum.

Polygon’s announced partnerships and launches over the last month that have increased DAUs may also be behind the price increase, along with anticipation of Polygon’s mainnet launch of its zero knowledge-EVM. The mainnet launch is scheduled for early 2023. Its zk-EVM public testnet went live in October.

“We’re starting to see users and interest come back to these kinds of networks and seeing activity again,” Charles Storry, head of growth at crypto index platform Phuture, told CoinDesk.

“There’s also a lot of projects that have built on top of Polygon that haven’t released their tokens yet, which will be coming out soon and add to the already increasing activity levels,” Storry added.

Polygon currently has around $1.1 billion total value locked (TVL) according to data from DeFi Llama,

“We are seeing mass TVL increases for riskier projects and early stage applications,” Storry said. “In a bear market investors are more conservative and don't want to take on huge risk, but now prices have picked up a little, they are more open to newer and riskier ecosystems like Polygon.”

“We will see more of that come through as the market continues to pick up.”


All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

NEAR protocol could see a rally as it sets out to launch an AI smart contract builder

NEAR protocol could see a rally as it sets out to launch an AI smart contract builder

Near protocol (NEAR) co-founder Illia Polosukhin stated in a social media post on Wednesday plans for NEAR to launch NEAR AI, a user-owned AI system that will allow users to build web3 apps without code on an end-to-end network.

More Near News

US House of Reps passes bill aiming to regulate cryptocurrencies

US House of Reps passes bill aiming to regulate cryptocurrencies

FIT21 bill received massive support as the House of Representatives voted to pass the bill on Wednesday. The White House and US Securities & Exchange Commission (SEC) Chair, Gary Gensler, expressed concerns about the potential impact of the FIT21 bill on investor protections in a statement.

More Cryptocurrencies News

Ethereum bulls await ETF approval as BlackRock, Bitwise, Grayscale submit amended ETH ETF filings

Ethereum bulls await ETF approval as BlackRock, Bitwise, Grayscale submit amended ETH ETF filings

Ethereum (ETH) is trading sideways on Wednesday as BlackRock, Bitwise and Grayscale submitted their amended 19b-4s filings to the Securities & Exchange Commission (SEC). The agency has also begun conversations with issuers on S-1s applications.

More Ethereum News

As Ethereum spot ETF approval nears, these altcoins could explode

As Ethereum spot ETF approval nears, these altcoins could explode

It is not surprising that altcoins related to Bitcoin saw a major rally post-Bitcoin spot ETF approval. Likewise, tokens closely related to Ether could ride the ETF approval wave. Ethereum Classic, Pepe, Floki and other DeFi tokens could gain momentum as the ETH ETF approval deadline nears. 

More Cryptocurrencies News

Bitcoin: Is BTC out of the woods? Premium

Bitcoin: Is BTC out of the woods?

Bitcoin price shows signs of continuing its uptrend, providing a buying opportunity between $64,580 to $63,095. On-chain metrics forecast a bullish outlook for BTC ahead. If BTC clears $70,000, the chances of resuming the uptrend would skyrocket.

Read full analysis

BTC

ETH

XRP