MATIC price gears up for rally despite concerns around Ethereum Virtual Machine scalability
- MATIC appears well-positioned for more upside after yielding 17.3% gains for holders over the past week.
- On-chain metrics reveal two important demand walls at $1.21 and $1.03, as long as MATIC holds above these levels, gains are expected.
- Polygon addressed concerns on high fees and informed the community Ethereum Virtual Machine does not scale, irrespective of hard forks.
MATIC price continued its short-term uptrend, yielding nearly 5% gains for holders since February 16.
The native token of the Ethereum scaling solution Polygon is prepared for more upside despite concerns of high transaction fees and the challenges associated with the Ethereum Virtual Machine (EVM).
In a community post, the Polygon team informed users how the EVM, which ensures smart contracts are executed on the Ethereum blockchain more cheaply and efficiently, cannot be scaled despite multiple hard forks.
Polygon team has been working on the launch of its zero-knowledge EVM mainnet to tackle high gas fees and scalability on the Ethereum network, and the challenges and hurdles are a disappointment for users.
Also read: Ethereum deflation rate is accelerating by the day: Here’s what to expect from ETH price
MATIC price has more upside potential according to this on-chain metric
MATIC price is currently in an uptrend and the altcoin has yielded nearly 20% gains for traders since February 10. Based on data from IntoTheBlock, there are two demand walls, one at $1.21 and the other at $1.03, as long as MATIC price stays above these levels, there is room for further gains.
These demand walls are key to MATIC’s uptrend since 19,000 addresses scooped up 1.16 billion tokens at $1.21 and 47,000 addresses bought 4.72 billion native tokens of the Polygon network at $1.03.
Global In/Out of the Money in MATIC
The two important demand walls are acting as pillars for the token’s uptrend. A decline below these levels could invalidate the bullish thesis for MATIC.
Polygon identifies the challenge in scaling the EVM
Based on a recent post in the community’s network, Polygon network's main challenge is that of high gas fees.
Yet, the team assured the community that the protocol is running as expected with no hiccups and their goal is to successfully scale the EVM.
Polygon community announcement
Despite numerous attempts at scaling the EVM through hard forks, the scaling protocol has faced the challenge of high transaction costs.
The Polygon team is working on the launch of its zero-knowledge EVM mainnet (zkEVM), and the rollout is expected to make transactions on the layer-2 solution faster and cheaper.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
