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Top Analyst Predicts 60x Profits For Polygon, Cosmos, And Avalanche

The crypto market is trending to the upside and recovering some of its last week’s gains with Polygon (MATIC), and other altcoins following the general trend. Digital assets seem to be positively reacting to the earnings reports from legacy companies.

Related Reading | Why The IMF Thinks The Crypto Market Could See “Further Selloffs”

At the time of writing, Amazon (AMZN) beat earnings expectations generating over $130 billion in net sales. Apple (AAPL) also beat expectations with $83 billion reported in earnings.

Amazon +10% pic.twitter.com/T4twX73AKG

— TradingView (@tradingview) July 28, 2022

 As a result, the S&P 500 recorded a 1.23% increase at the U.S. close with the Nasdaq and the Dow Jones trading in the green. The crypto market benefited from these reports, as it continues to move in tandem with legacy financial markets.

Top crypto analyst Michaël van de Poppe celebrated AMZN and AAPL’s positive price moves. The analyst believes the price action in equities will continue to spill into the crypto market. Via Twitter, van de Poppe said:

we’re definitely ready for fireworks (…). The entire market looks ready to continue moving heavily.  Many altcoins & Bitcoin breaking above 50-Day Moving Average. Bitcoin breaking above 200-Week Moving Average. Looks to me to see a continuation on those altcoins for 100-200%.

The analyst singled out Solana (SOL), Polygon (MATIC), Cosmos (ATOM), Avalanche (AVAX), and others with the best potential to benefit from a long-term bullish trend. These cryptocurrencies have the potential to record 60x returns “in the next bull cycle”, van de Poppe said.

In the short term, as mentioned above, these altcoins could register as much as 100% to 200% gains if the bullish momentum extends. The analyst claims most of these altcoins have broken above key moving averages and might find little resistance as they reclaim previously lost territory.

According to this analyst, Avalanche (AVAX) alone could hit a target of $37 to $41. Solana on the other hand might hit $62 to $84 and Polygon beyond the $1 mark.

MATIC’s price records important gains on the 4-hour chart. Source: MATICUSDT Tradingview
Can Polygon (MATIC) Benefit From A Crypto Summer Rally?

The analyst claims the crypto market stands to benefit from a relief rally on the back of a dovish U.S. Federal Reserve (Fed). The financial institution has been trying to mitigate inflation by hiking interest rates, and according to market expectations, this metric should trend lower in its July print.

In addition, the Ethereum “Merge” was set for September 2022. This event is considered highly bullish for the cryptocurrency which has provided ETH bulls with enough strength to push the market to the upside.

Related Reading | Bitcoin Makes Surprise Climb As Fed Discloses 0.75 Point Rate Bump

Polygon (MATIC), Avalanche (AVAX), Solana (SOL), and Cosmos (ATOM) might prove good bets in the long run due to the upcoming products, their partnerships with major players in and outside the crypto industry, and their development teams.

Ideal ingredients for a Summer Relief Rally are there:

Powell becoming dovish on policy and more data-dependent.
$ETH merge coming up in September.
Heavy impact on 3AC, Celsius, and more already priced in.

I’m seeing $ETH to $2,400 and $BTC to $28,000-30,000.

— Michaël van de Poppe (@CryptoMichNL) July 27, 2022 

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MATIC Rises Again, Will It Target The Psychological Level Of $1?

MATIC has been on a bullish streak over the past week now. Despite the bullish streak, it hasn’t been able to move past the $1 psychological level. Technical indicators have remained bullish on the chart and pointed towards chances of reaching the $1 price ceiling.

Over the last week, MATIC surged 22% and on the daily chart the coin moved up by 7%. MATIC had managed to touch the $0.97 mark however a small fall in buying strength caused the altcoin to fall on the chart briefly. Buying strength was positive displaying that bullish strength hadn’t faded away.

A pullback can bring MATIC down to the $0.77 level. If buying strength remains consistent, then the coin can attempt to break above the psychological price ceiling of $1. At press time, MATIC had secured itself above the $0.75 support line.

The global cryptocurrency market cap today was at $1.09 Trillion, a 2.6% positive change in the last 24 hours.

MATIC Price Analysis: Four Hour Chart
MATIC was priced at $0.87 on the four hour chart | Source: MATICUSD on TradingView

The altcoin was trading at $0.87 at the time of writing. The coin had briefly touched the $0.97 mark but was met with selling pressure. Overhead resistance for the coin stood at $0.92, a move above which could force MATIC to touch the $1.

Local support for the coin stood at $0.77, fall from that level will cause MATIC to reach $0.60. The amount of MATIC traded over the last trading session fell slightly which indicated that buying strength fell on the chart.

MATIC displayed positive buying strength on the four hour chart | Source: MATICUSD on TradingView

The altcoin had visited the overbought zone a couple of times, however as the coin fell in value buying strength dipped. At the time of writing, buying strength remained more than selling strength.

The Relative Strength Index was pictured above the half-line which meant that buyers were more in number.

Price of the altcoin was above the 20-SMA line which meant that the buyers drove the price momentum in the market. This was a sign of bullishness for the altcoin.

Related Reading | Bitcoin Funding Rate Remains Positive, More Decline Soon?

MATIC displayed sell signal on the four hour chart | Source: MATICUSD on TradingView

The altcoin registered a small dip in buying strength and the technical indicator displayed the same. The Moving Average Convergence Divergence depicts the price momentum and change in that. MACD underwent a bearish crossover and formed red signal bars.

These red signal bars represent sell signal for the altcoin. Awesome Oscillator portrays the price trend and also points towards chances of a reversal, the green signal bars still represent bullish strength.

If the coin continues to keep up with the pace then buying strength has to support the coin. Broader market strength shall also help MATIC to achieve its psychological target of $1.

Suggested Reading | Polygon (MATIC) Looks Set For A Retracement After Recent Gains

Featured image from The Face, chart from TradingView.com

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MATIC Logs Double Digit Gains, What Could Be The New Targets?

MATIC propelled significantly over the last 24 hours driving price of the asset close to the dollar mark. It has followed the path of an upward trendline and soared substantially. MATIC has continued its bullish price trajectory since a week and the asset brought double-digit gains.

The altcoin has broken past several crucial resistance marks and now stands above the $0.77 support line. Pullback chances cannot be ruled out as the coin has been quite optimistic in the last week. Bitcoin recently touched the $22,000 level pushing major altcoins in the upward direction.

The altcoin’s bulls are now in control as the buyers have regained confidence in the coin. MATIC was overvalued at the time of writing. Technical outlook for the coin remained bullish on the four hour chart. The altcoin has continued to form higher highs which are an indication of bullish strength on the chart. If the bulls keep up the present price momentum, MATIC will soon revisit the dollar mark.

MATIC Price Analysis: Four Hour Chart
MATIC was priced at $0.903 on the four hour chart | Source: MATICUSD on TradingView

The altcoin was trading at $0.903 on the four hour chart. MATIC was very close to revisiting $1.00. If buyers keep up the momentum, MATIC will continue to soar upwards. Overhead resistance for the coin stood at $1.00.

In case of a pullback, the closest support level for MATIC was at $0.77, below which stood the $0.68 mark. The altcoin has maintained an upward trajectory (yellow line) painting bullish picture on the chart. Amount of MATIC traded increased over the last few days and that is indicative of mounting bullish strength.

Technical Analysis
MATIC was overbought on the four hour chart | Source: MATICUSD on TradingView

With increased buying momentum, the asset registered surplus buying strength. The indicators depicted the same on the four hour chart. The Relative Strength Index over the past few days have visited the overvalued zone.

At press time, RSI was in the overbought zone. Usually a pullback occurs when the asset visits the overbought zone. The price of MATIC was also way above the 20-SMA line which is suggestive of buyers driving the price momentum in the market.

Price above the 50-SMA and 200-SMA is considered to be sign of heavy bullishness.

Related Reading | Bitcoin Breaks Above Realized Price Again, Bottom Finally In?

MATIC displayed buy signal on the four hour chart | Source: MATICUSD on TradingView

The altcoin flashed buy signals on the chart which the other indicators have taken into account. Awesome Oscillator indicates the price direction and changes in trends. AO pictured tall green signal bars as the coin turned green which were also buy signals.

Parabolic SAR depicts market momentum of a crypto, dots below the price always indicates upward price momentum. For MATIC to maintain the momentum, the coin has to cut through the $1.00 mark and maintain substantial buying strength. Broader market support also remains vital.

Related Reading | Liquidations Cross $230 Million As Ethereum Barrels Past $1,400

Featured image from Forbes.com, chart from TradingView.com

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Weekly Update: LDO Outperforms, MATIC Rises By 65% While Ethereum Gains Momentum

As markets responded to Shadow Fork 9’s announcement, ETH was back in the green. Ethereum is currently regaining ground and progressing due to the favorable market situation. 

At the same time, some other altcoins are doing well on the weekly chart, such as Polygon (MATIC) and Lido DAO (LDO), which have seen considerable price increases over the last week and in the previous 24 hours as well.

Related Reading |  TA: Bitcoin Price Eyes Fresh Increase To $22K, Why Dips Remain Supported

Only a few of the top 100 cryptocurrencies have been able to generate double-digit gains, and the rest are still suffering from the effects of the merciless crypto storm. One of them is Polygon (MATIC), which demonstrated a sizable gain.

Per the CoinGecko statistics, MATIC is currently trading at $0.91, up almost 19.88% over the past 24 hours and a notable 65% gain over the last seven days. After Disney revealed that Polygon (MATIC) had been chosen for its “Accelerator Program,” the price of the coin increased quickly. 

The list also includes Lido DAO (LDO), which has experienced a significant gain. The decentralized autonomous organization’s governance token, LDO, outperformed over the last seven days with a remarkable increase of 167%. Its current price is $1.68, with an upward thrust of 6.1%throughout the previous 24 hours.

Even though LDO was able to recover its losses from the June decline, in which it fell to a low of roughly $0.432899, it yet hasn’t found the support it needs to climb back to the May high of $3.3816.

ETH is currently trading at $1481 on the daily chart | Source: ETHUSDT From Tradingview
Ethereum(ETH) Is On A Comeback Rally

Ethereum (ETH), the second largest coin, has recently crossed the $1,400 threshold. It has gained 9.31% over the previous 24 hours and is currently trading at $1,482.01. The currency has increased by around 29.32% over the past seven days, according to CoinMarketCap, and is thus gaining momentum.

According to nomics data, ETH’s overall market cap increased by 8.78% over the last 24 hours to $179.11 billion. However, the price increase occurred after a week of poor performance and unfavorable market circumstances.

Although, the specific cause is unknown. The fact is that the price spike occurred right after the ninth shadow fork’s introduction on July 14. It implies that the price spike may be caused by the rising popularity of Ethereum and its impending “Merge” to Proof-of-Stake.

Related Reading | Preference For Ripple XRP Surges Among BSC Whales

The Merge was covered during the most recent Consensus Layer Call of the Ethereum Foundation, which took place on Thursday. Tim Beiko, an Ethereum Foundation member, proposed September 19 as a tentative launch date, providing the most unambiguous indication that the Merge would happen soon.

The merge upgrade combines Ethereum’s consensus and execution layers to switch the network from Proof-of-Work to Proof-of-Stake. It is anticipated to cut the network’s energy use by 99.95%, but it won’t necessarily result in lower transaction fees (gas).

Featured image from Flickr, chart from Tradingview.com

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Polygon’s QuickSwap Considers Token Split, Why It Could Be Bullish For QUICK

On a positive trajectory over the last 24 hours and moving along with the general sentiment in the market, Polygon decentralize exchange (DEX) QuickSwap could boost its fundamentals. According to a recent announcement, the project could split its native governance token QUICK.

Related Reading | Polygon Token Price Analysis – New All-Time High This Week For MATIC?

Dubbed the “most important governance discussion to date” on the platform’s official social media channel, a fierce debate has taken place between Polygon users. This process is critical, and could precede a voting on the token split, depending on its result.

The main argument behind the proposal is supported by the potential expansion of the Polygon token, QUICK, supply. The project is currently planning changes on its tokenomics. A change in QUICK’s supply stands as the first and one of the most important.

If approve, the community will vote on possibly splitting the Polygon token on a 1:100 or 1:1,000 relation. The team behind QuickSwap clarified the following:

This would mean that for every 1 QUICK you now hold, you would hold 100 QUICK or 1000 QUICK after the split. QUICK’s maximum supply would increase from 1 million to 100 million or 1 billion.

The split would attempt to “open up” QuickSwap to new users, particularly those with intention to invest but that consider QUICK “too expensive” or with “small chances” of future appreciation. The proposal has managed to secure support from a portion of QUICK holders, others remain skeptical.

5/ One concern is that the split could be deemed a taxable event💸

💰We know how much dragons value their treasure & wouldn't want you to part with yours

🪙We aren't tax experts & can't give tax advice, but stock splits aren't taxable events & token splits shouldn't be either

— QuickSwap (@QuickswapDEX) March 5, 2022

QuickSwap’s Co-Founder Roc Zacharias commented the following on the potential implications of the token split on the DEX ecosystem, and its capacity to improve the platform’s components, such as its treasury:

If this split DOES work out like we think it might, it could strengthen the treasury (which is owned by all of you the community, it could increase reward value which can increase liquidity and indirectly volume etc, and most importantly, it can bring new users! Please think hard about this.

Polygon QuickSwap Token Split And The Polkadot Case

Many users, including the team behind the Polygon decentralize exchange platform, have compared this potential token split with the stock market. In the legacy financial system is “common” for companies to issue more stocks via a similar process addressing a concept called Unit Bias.

This idea indicates, as explained by the team behind QuickSwap, that an investors might be willing to own “more of a less scarce asset”. In the crypto industry, other projects have conducted token splits in the past often leading to price appreciation.

The team behind token swap mentioned Polkadot (DOT), as an example. Via their official Twitter handle, QuickSwap said:

(…) when Polkadot did a 1:100 redenomination, $DOT rose from a sub-100 market cap to the 7 position. More recently, Gains Network did a 1:1000 token split & migrated from GFARM2 to GNS. In dismal conditions, GNS did a 6x.

Remains to be seen if history will repeat itself with QUICK. However, Polygon, and second layer solution on Ethereum, seem to be attracting a lot of attention as they provide users with a cost efficient and more scalable gateway into the DeFi sector.

Today, https://t.co/Y7yxw3SzE7 published a piece analyzing $QUICK's price💰

Wallet Investor suggested that QUICK could be worth $7.95 at year end

That's eerily close to the $7.67 I calculated by averaging #DEX tokens

If QUICK did a 1:1000 token split & rose to $7.67, WWYD?

— 🤗 NrdGrl007 🤗 🐇 🕳 (@nrdgrl007) March 7, 2022

Related Reading | TA: Ethereum Could Avoid a Major Downtrend if it Closes Above One Key Level

At the time of writing, Polygon (MATIC) trades at $1.43 with a 1.7% profit in the last day.

MATIC trends to the downside on the daily chart. Source: MATICUSDT Tradingview

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Why Polygon Will Implement Ethereum’s EIP-1559 Update

Ethereum’s scalability solution Polygon will implement this network update in its fee model via EIP-1559. According to an official post, this upgrade will introduce a burning mechanism for MATIC and will improve its fee visibility.

Related Reading | Polygon Expands Its Footprint As Evolving NFT And Gaming Ecosystems Seek Ethereum Alternatives

Ethereum introduced EIP-1559 with Hard Fork London back in 2021. The update was highly anticipated as it was supposed to aid mitigate Ethereum’s congestion issues and made fee more predictable. Some users even claimed the update was going to significantly reduce Ethereum fees which has proven to be false.

However, as seen below, data from Messari suggest that fees on Ethereum have actually increased since the implementation of EIP-1559. At least in a one-year period and comparing the period pre-London, and the posterior months.

Source: Messari

According to Polygon, their team is got ready to roll out the update today January 18th. As the post claims, EIP-1559 changed Ethereum’s first-price auction model for fee calculation to establish a fixed fee to include a transaction on a block. This base fee can vary and its burn once the transaction has been validated. The post explained:

The burning is a two-step affair that starts on the Polygon network and completes on the Ethereum network. The Polygon team has created a public interface where users can monitor and become part of the burning process.

The team behind Polygon will publish a link to the monitor at a later time. As seen below, users will be able to see the amount of MATIC that has been burned and watch the burning process live.

Source: Polygon’s blog
Polygon To Improve Fee Mechanism, Will EIP-1559 Deliver On Its Promise?

The team behind Polygon claims users, validators, delegators, and everyone on the MATIC ecosystem will benefit. A burning mechanism will contribute with the token’s appreciation as it creates deflationary pressure on its supply.

Some experts believe EIP-1559 was one of the reason for ETH’s price year of continuous appreciation and its bullish momentum. Others have expressed disappointment; they believe the issues present on Ethereum, allegedly to be fix by this update, persist.

The inventor of Ethereum Vitalik Buterin recently defended EIP-1559. Based on a study conducted by two major academic institutions, Buterin claimed this update has achieved its objective of decreasing average waiting time to process transactions on the network.

Excellent paper by some researchers at Peking University and Duke University on the consequences of EIP 1559. Particularly appreciate the confirmation that EIP 1559 has greatly decreased average waiting times for transactions.https://t.co/2rvzx93Yar pic.twitter.com/nPtnAJNle9

— vitalik.eth (@VitalikButerin) January 17, 2022

In an interview for NewsBTC, the co-founder of the non-profit organization Aleph Zero, Adam Gagol, talked about the MEV problem on Ethereum, its impact on the fee cost for users, and the advantages and tradeoffs of EIP-1559. Gagol told us:

(…) the EIP-1559 implementation in London upgrade made the problem even worse. Although it put mechanisms in place to lower fees and protect them against volatility, it did so at the expense of miners. Block production revenue was cut by something like a third, so MEV is more incentivized than ever.

Related Reading | Polygon ’s Side Of The Story: Hard-Fork Resolved A “Critical Vulnerability”

As of press time, Polygon (MATIC) trades at $2,09 with a correction to the downside in the past 24 hours.

MATIC trends to the downside in the 4-hour chart. Source: MATICUSDT Tradingview

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How Polygon Will Seek To Strengthen DeFi With $2 Million Bug Bounty

In the face of an increase in the number of attacks on DeFi platforms, Polygon has decided to take new measures. The Ethereum scaling platform recently announced a $2 million bug bounty.

In that way, Polygon expects to “root out and eliminate potential security flaws”, according to a press release. Only a few months ago, the DeFi ecosystem experienced one of its biggest hacks when it lost over $600 million on different platforms.

Polygon recorded an $85 million loss at the time. While Ethereum and Binance Smart Chain (BSC) recorded a combined estimate of $500 million in losses.

Related Reading | Q&A With Poly Hacker, Hero Or Villain Behind Biggest DeFi In History?

The exploit used by the Poly Network hacker focused on a blockchain agnostic trading pool called O3 Swap. Ironically, the attacker that perpetrated this hack asked the projects for more security measures and transparency.

The Polygon network bounty program is live since September 20, 2021, on the bug bounty platform Immunefi. Focused on DeFi and smart contract security, the platform will host the program as an “open invitation to security researchers”.

In that way, the project expects to find and fixed potential security vulnerabilities in the smart contracts and dApps ecosystem power by Polygon. Thus, the platform seeks to offer its users more security and protection for their funds.

The bug bounty program will reward white hackers in relation to their findings and the severity of the potential security vulnerability discovered. The rewards will range from the $1,000 for “low-level threats”, the release clarifies”, and $2,000,000 for critical threats.

Related Reading | Polygon Links With Filecoin, How Users Will Benefit From Free Storage

On the other hand, if a white hacker finds a vulnerability on a dApp, they could receive a reward ranging from $2,500 to $15,000. Payments will be made in the following cryptocurrencies: Polygon (MATIC), Ethereum (ETH), or a stablecoin.

How Polygon Will Operate Its Bounty Program

Polygon will leverage Immunefi Vulnerability Classification System. This mechanism will allow the team to have a threat classification system according to the potential vulnerability of the network.

In order to be eligible for a reward, white hackers must submit a report that needs to include certain details about their findings. For example, reports must have a step-by-step guide so the Polygon team can reproduce the potential threat and other evidence such as screenshots and logs.

Related Reading | Ethereum Is Ready For Inevitable Climb Over $10,000, Says Crypto Analyst

Data from research firm Messari claims that over $284 million have been lost to DeFi hacks since 2019. Thus, why an improvement in this sector’s security has become a “matter of utmost importance”.

Source: Messari via Twitter

Sandeep Nailwal, Co-Founder of Polygon said the following on their new bounty program:

User security is at the forefront of Polygon’s ethos. This substantial bounty offering aims to solidify what we know to be an extremely secure network.

On the other hand, founder and CEO of Immunefi Mitchell Amador said:

Bug bounty programs continue to be an essential part of the security stack for protecting crypto protocols and user funds locked in their contracts. We’re proud Polygon chose us among other platforms to ensure the safety of its protocol, and look forward to our collaboration.

At the time of writing, MATIC trades at $1,21 with a 9.5% profit in the daily chart.

MATIC trends to the upside in the daily chart. Source: MATICUSDT Tradingview

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Polygon Links With Filecoin, How Users Will Benefit From Free Storage

Layer one network Polygon continues to expand and solidified its position in the crypto space. Recently, they announced a new partnership with Filecoin, a network that allows users to store and transfer data via a native marketplace.

The cooperation launched the Filecoin-Polygon Bridge, to increase their interoperability. Built by the Textile team, the bridge enables users to use any Polygon mainnet to connect with Filecoin’s storage and

(…) start storing data on Filecoin from any Polygon address without any conversions, signups, developer tokens, or secrets exchanged.

In addition, Textile, Polygon, and Filecoin announced further incentives for users and developers to leverage the bridge. For the foreseeable future, they will cover all storage costs for every project using the Textile Filecoin Storage Bridge. Thus,

Filecoin will bring greater functionality to Polygon applications that require decentralized and verifiable data storage.

The bridge will be “gradually” improved to increase its usability and will launch a governance model. In that way, the community will have the power to decide the direction of the project and will operate as an additional incentive for users and developers to jump in and participate.

½ 📢 @Filecoin is coming to Polygon!

📂 @textileio’s Filecoin-Polygon Storage Bridge can store data from any Polygon address owner accelerating the Web3 interoperability between Polygon & Filecoin ecosystems.

🌐 Learn more: https://t.co/IN7gcXH4Wo pic.twitter.com/C6Ux0s36aD

— Polygon (@0xPolygon) August 20, 2021

The bridge will benefit from Filecoin’s features, and any app, smart contract, or service will still rely on the InterPlanetary File System (IPFS) to retrieve data. Information will be available on an entity called “storage contract” to be created with miners operating on the Filecoin Network.

One of Textile’s main objectives is to improve Polygon, and other blockchains capacity to hold and transfer data:

Filecoin brings many of the best parts of the IPFS stack, including verifiable data, peer-to-peer (p2p) data exchange, de-duplication, and more. We can create a more secure data storage layer for Polygon applications and their users (…).

An Improve Storage Layer For Polygon, How Does It Work?

According to a blog post published by Textile, the Filecoin Storage Bridge to Polygon is supported by two concepts. The first is “deposit” and is power by an API that enables them to take place on-chain, the second is “storage” power by several APIs that “interact off-chain with a storage validator that will interface with Filecoin”.

This system offers protection against bad actors and potential Sybil Attacks, as users must deposit funds proportional to the length of time that they’d like to keep their data storage, Textile clarified. The default amount to be deposited for an hour of storage is 100GWEI per second or 0.00036 MATIC every hour.

As seen in the chart below, research firm Messari records an increase in total value locked on Polygon. This metric, as research Ryan Watkins said, has many detractors but can be used as a proxy to determine “how much value” users place on the smart contracts running on this ecosystem.

Source: Messari

The metric has seen a recovery after a decline during June and is “trending nicely” towards previous highs. At the time of writing, MATIC trades at $1,64 with an 8.3% profit in the daily chart.

MATIC follows the general market sentiment with a rally in the daily chart. Source: MATICUSDT Tradingview

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Polygon Acquires Hermez Network, How They Will Improve Ethereum Scaling Solutions

Via their Twitter handle, protocol and cross-chain bridge Polygon announced a new area of interest, ZK-based scaling solutions. In order to contribute and improve this approach to aggregate transactions into a blockchain, the project also announced a merger with Hermez Network and a $1 billion investment.

Based on zero-knowledge proof, the layer 2 scaling solution called ZK-Rollups allows funds to be deposit into a smart contract on top of the Ethereum network. Thus, transactions can be securely processed off-chain and scalability can increase.

As its official announcement, there is a high demand for Ethereum to improve its scalability. The project claims that their PoS based chain is “the best immediate solution” and relief for the increase in transactions fees and network congestion. They added:

By establishing itself as one of the industry’s most popular and highest valued projects, Polygon proved that there is a lot of value to be created and captured by working on these hard challenges in symbiosis with Ethereum, instead of competing with it.

The $1 billion investment will come directly from Polygon’s treasury and will use to hired and acquired “world-class” ZK-based projects and teams. In addition, the funds will be used for research, building, and adopting ZK-based solutions.

Scaling solutions have 3 major challenges, the team argued security, decentralization, and privacy. These won’t be resolved immediately, but the Ethereum ecosystem is at a “stage of intense innovation and experimentation” with the potential to lay start creating solutions that will eventually meet those challenges.

Therefore, the project revealed that they will focus on two “major long-term” goals. The first one is “Shipping” or putting the solutions and innovation in “the hands of developers and users”. The second is to make Polygon the “innovation hub” for Ethereum. On scalability, they added:

Ethereum base layer fees reached levels that made Ethereum practically unusable for most users and use cases, and we already started seeing user outflow to competing projects that decided to make problematic compromises in terms of decentralization, security etc. We realized that something has to be done today, and thus we built and offered our Polygon PoS chain (…).

Polygon To Merge With Ethereum Based Hermez Network

As of today August 13th, Polygon and Hermez Network, a decentralized zk-rollup based scaling payments running on Ethereum, will begin a merger process. Thus, the solution will be rebranded as Polygon Hermez and will be part of this protocol ecosystem and solutions, such as Polygon PoS, SDK, and others.

The merger process will be supported by funds obtained from the protocol’s treasury, 250 million MATIC tokens or around $250 million have been committed to fulfilling this purpose.

We at Polygon are very aware of the importance of EVM-compatibility, and the fact that Hermez already has a roadmap and is actively working on introducing it was another big signal for us that joining forces makes sense.

At the time of writing, ETH trades at $3,230 with a 6% profit in the daily chart.

ETH with minor profits in the daily chart. Source: ETHUSD Tradingview

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Polygon’s Total Value Locked Explodes, MATIC Could Run Hotter After A 120% Rally

Polygon (MATIC) has seen an explosion on the daily chart with a 40.4% rally trading at $0,74. In the weekly and monthly chart, MATIC’s numbers are equally impressive with a 118% and 114% bull-run. Most of the profits seem to have been recording over the past three months.

Polygon MATIC MATICUSDT
MATIC with heavy gains in the daily chart. Source: MATICUSDT Tradingview

Previously knows as Matic Network, the project was rebranded Polygon at the end of February. A second-layer solution for Ethereum. The project seeks to be a version of Polkadot on this blockchain and create an interoperable sidechains ecosystem with high scalability.

In parallel with its price rally, Polygon has seen a major explosion in its total value locked (TVL). Data from DeFi Pulse records a $1.12 billion with a 32.6% increase in 24-hours. The protocol has 126.400 ETH locked with 19.600 added in the past day.

As the chart below shows, MATIC went parabolic in TVL by mid-April 2021. Although it had a setback during the subsequent days, the protocol’s TVL has picked up a bullish momentum and keeps aiming for all-time highs.

Polygon MATIC MATICUSDT
Source: DeFi Pulse

Additional data from The Block Research shared via their Twitter handle indicates that Polygon’s PoS has seen more increase in value locked than Binance Smart Chain, xDAI, Avalanche, NEAR, and others. The report attributes Polygon’s rise to an “incentive program effort”.

Polygon MATIC MATICUSDT
Source: The Block Research

Polygon’s team revealed at the beginning of last week a continuation of their “DeFi Summer”. Therefore, users were offered over $5 million in liquidity mining rewards for the Curve Polygon markets.

Polygon’s ecosystem appears to be growing with over 100 DeFi projects building on the solution. Its cooperation with Curve protocol is to “meet” the demand for “deep liquidity” stablecoins trading pairs. The team said:

This 5mn$ liquidity rewards program is part of the #DeFiForAll campaign on Polygon! We look forward to growing and expanding the DeFi ecosystem on Polygon along with Ethereum’s top DeFi protocols.

MATIC’s Support And Possible Price Targe

According to data from Cryptoyieldinfo, Polygon’s native token could “do a BNB”, in reference to this other token recent rally. With $1.1 billion in Aave and $100 million in Curve locked in over a week, MATIC could reach a $2 to $8 target if demand for the token continues to rise.

Anonymous trader Hsaka is more conservative when predicting a possible price target for MATIC, but still sees a long of upside potential for the token. The trader said the following:

Sidechain debate is trivial. As of now, $MATIC is the most accessible liquid puntable token that represents the $ETH scaling narrative. With Curve and Aave already rolling out support, that mindshare is only going to increase. $1.