Polygon Sets New All-Time High Amid Market Recovery
The Ethereum scaling solution topped out at $2.66 earlier today.
- Polygon's MATIC token hit a price of $2.66 for the first time today.
- While Polygon started as a low cost way to access DeFi, it has since pivoted to other uses such as blockchain gaming.
- Polygon's acquisition and development of ZK-Rollup scaling solutions has made it a good choice for those wanting to invest in the technology.
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Polygon has broken past its previous all-time high of $2.62 following a 64% rally over the past month.
Polygon Makes New Highs
Polygon is closing out 2021 in bullish form.
The Ethereum scaling solution’s MATIC token has moved higher today, gaining 14.4% to reach a new all-time high of $2.66. It’s since cooled off, currently trading at $2.61.
MATIC’s previous all-time high of $2.62 was achieved seven months ago in May, just days before the cryptocurrency market experienced its most brutal sell-off of the year. Since then, the token went into a long accumulation phase bringing it down to lows of $0.69 in July.
However, as the wider market recovered in August, Polygon once again showed strength and has steadily climbed back to its pre-crash price levels over the second half of the year.
While Polygon’s spring rally was mainly fueled by Ethereum DeFi projects launching on the chain, it has since expanded to other use cases. Blockchain gaming has exploded on Polygon, with over 70% of unique active wallets on the network playing blockchain games as of Nov. 5.
Additionally, Polygon has pivoted toward new and improved scaling solutions using Zero-Knowledge Rollups. In addition to its own ZK-rollup, Miden, Polygon has acquired two more scaling solutions, Hermez and Mir, using its $1 billion treasury fund dedicated to acquiring ZK-based projects.
Another development that factors into Polygon’s adoption is its interoperability with other chains. Over the past few months, several new bridges have been launched, allowing users to quickly send funds from Ethereum Layer 2 solutions and dedicated Layer 1 chains to and from Polygon at low cost.
More recently, Uniswap, Ethereum’s biggest decentralized exchange by volume, approved a governance proposal to support the Polygon blockchain. When Uniswap launches on Polygon, it could potentially spur a DeFi renaissance and bring more liquidity to the network.
Whether the MATIC token will continue its current rally remains to be seen, though the broader crypto market has been showing signs of recovery over the last few days following a shaky few weeks. However, as the excitement surrounding ZK-Rollup-based Ethereum scaling increases, Polygon looks poised to benefit from the growth of the emerging technology.
Disclosure: At the time of writing this feature, the author owned ETH and several other cryptocurrencies.