NEW DELHI (CoinChapter.com) — Ethereum scaling solution Polygon (MATIC) enjoyed a spike in NFT activity and the upcoming launch of zkEVM. MATIC price leveraged traders’ interest in Polygon’s developing ecosystem to rally over 22% since Feb 13 to reach a daily high of $1.39 on Feb 16.
Polygon has announced the launch of the beta mainnet of its zkEVM (zero knowledge Ethereum Virtual Machine) on Mar 27. The team noted that the zkEVM testnets attracted “unprecedented interest” from developers in the Polygon ecosystem.
Polygon highlighted that zkEVM has hit since development began for Mainnet beta, such as incorporating more than 84,000 wallets and producing more than 300,000 blocks. Moreover, the announcement noted that developers “battle-tested” the EVM for six months on public testnets.
Polygon zkEVM also doesn’t sacrifice performance for the sake of EVM-equivalence. In fact, it’s only getting cheaper and faster to use. Proof times for a batch of hundreds of transactions are rapidly nearing two minutes, with increased throughput expected in the near future.
Polygon said in its announcement
Additionally, Polygon noted that the cost of generating proofs for a large batch of transactions is down to $0.06. Furthermore, the proof cost for a simple transfer has reached less than $0.001. The zkEVM also underwent two public third-party audits, likely increasing investors’ and developers’ trust in the platform.
Meanwhile, Polygon has witnessed increased NFT activity, with weekly volumes on Polygon marketplaces rising since Oct 2022. Recently, Shemaroo announced the launch of its NFT marketplace on the Polygon network.
Meta’s Instagram also chose Polygon to mint its NFTs, although the project remains in the testing phase. Moreover, the Ethereum scaling project has more than 60 metaverse-related projects.
MATIC Price Forms A Bullish Crossover
MATIC price rode the bullish news from Polygon’s stables to reach its highest level since Apr 2022. Moreover, the rally helped the Polygon token extend its 2023 YTD gains to 86.7% from Jan 1’s low of $0.747.
MATIC price has remained above the dynamic support zone between its 20-day EMA (red wave) and 50-day EMA (purple wave) trendlines. However, bears have been active near peaks, as the long upper wicks on daily candles indicate.
Polygon’s uptrend has helped the token’s momentum oscillator MACD form a bullish signal called the bullish crossover on Feb 16. The pattern forms when the MACD line (difference between 12-day and 26-day EMA) moves toward the MACD signal line (9-day EMA of MACD).
Should buyers enter the market, MATIC’s price might flip its immediate resistance near $1.42. Moreover, a break and hold above its immediate resistance would help the Polygon token rise to challenge resistance near $1.56 before downside corrections pare gains.
On the other hand, if the uptrend fails, MATIC’s price might drop to test support near $1.3. Breaching the immediate support level could force the MATIC token price to drop to $1.2 before recovering.
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