Polygon powers Layer 2 network, aims to connect 50 million users to Ethereum


Share:
  • Polygon’s open-source codebase helps OKX build a Layer 2 network to bring more users to the Ethereum ecosystem. 
  • The sovereign Ethereum Layer 2 chain, X1, is powered by Polygon. 
  • MATIC price yielded 27% weekly gains, on-chain metrics signal local top in the Layer 2 token.

OKX used Polygon’s open-source codebase, CDK, to build a Layer 2 network X1 that onboards its users to the Ethereum ecosystem. Polygon’s technology makes it possible for users to join the global on-chain ecosystem of Ethereum and access other CDK chain’s liquidity.

Also read: MATIC price gains might be sustainable as token leaves exchanges in large volumes

Polygon powers OKX’s Layer 2 protocol X1

Polygon, a leading Ethereum scaling solution, offers its Chain Development Kit (CDK) to build Layer 2 protocols for onboarding users to the ETH ecosystem. OKX used Polygon’s CDK to connect over 50 million users to the global Ethereum ecosystem, through its Layer 2 protocol X1.

Polygon’s technology helps power sovereign Layer 2 chains that utilize CDK liquidity and Ethereum’s security and infrastructure. This makes the ETH ecosystem accessible to more users, through Polygon’s open-source codebase. 

The bullish development supports MATIC’s recent price gains. The Ethereum scaling token is up 2.86% on the day and 27% over the past week. 

On-chain metrics signal local top in MATIC

According to on-chain metrics from crypto intelligence tracker Santiment, MATIC price likely hit its local top. Network Realized Profit/Loss (NPL) indicator that computes daily network-level ROI for an asset’s transactions, identifies whether traders are selling at a profit or a loss. Strong spikes in NPL indicate holders are selling at significant profits; spikes are also typically associated with local tops. 

As seen in the chart below, NPL spikes are concentrated between November 3 and 15, coinciding with the MATIC price rally to $0.94.

NPL

Network Realized Profit/Loss and price

Another on-chain metric, the 30-day MVRV helps determine the average profit/loss of traders who purchased ADA over the past month. In the chart below, Market Value to Realized Value (MVRV) for MATIC signals profit-taking by MATIC traders. 

MVRV ratio

MVRV Ratio (30-day) and price

The two on-chain metrics add credence to the bearish outlook and possibility that MATIC price has hit a local top, traders are engaging in profit-taking.

At the time of writing, MATIC price is $0.94 on Binance.

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

APE price nosedives nearly 9% while ApeCoin community votes on three active proposals

APE price nosedives nearly 9% while ApeCoin community votes on three active proposals

ApeCoin community is currently voting on three proposals to increase the adoption of the asset among market participants through higher engagement. APE’s recent token unlock and the active proposals could influence APE price in the coming weeks and months. 

More APE News

USDC stablecoin issuer Circle ends support on TRON due to compliance, risk management issues

USDC stablecoin issuer Circle ends support on TRON due to compliance, risk management issues

Circle announced plans to discontinue USDC on the TRON blockchain in a phased manner. USDC issuer will no longer mint the stablecoin on TRON, effective Wednesday. Circle stated that its decision is a part of risk management and USDC will remain safe with the change.

More Cryptocurrencies News

Uniswap launches v2 on Arbitrum, Polygon, Optimism, Base, Binance Smart Chain and Avalanche

Uniswap launches v2 on Arbitrum, Polygon, Optimism, Base, Binance Smart Chain and Avalanche

Uniswap v2 enables swaps on six chains and users can access it from a single interface. UNI price declined nearly 4% on Wednesday to $7.309. UNI price could revisit 2024’s peak at $7.972 as on-chain metrics support uptrend.

More Cryptocurrencies News

Ripple CEO criticizes SEC says regulator has lost lawsuits consistently; XRP price holds firm above $0.55

Ripple CEO criticizes SEC says regulator has lost lawsuits consistently; XRP price holds firm above $0.55

Ripple CEO Brad Garlingouse commented on the SEC v. Ripple lawsuit and a potential XRP ETF. The payment remittance firm recently acquired Standard Custody to venture into the crypto custodian business. 

More Ripple News

Bitcoin: BTC eyes $60,000 but correction looms

Bitcoin: BTC eyes $60,000 but correction looms

BTC has been moving up only since January 22 but could slip into a consolidation before the next leg up. With the rate at which BTC is climbing after the ETF approval, coupled with strong fundamentals, investors should consider buying the dips before BTC hits $60,000.

Read full analysis

BTC

ETH

XRP