Polygon (MATIC) Recovers From $2.0. Is It Going to $3.0?

Polygon just donated $1 billion to the research of zero-knowledge technologies. Polygon (MATIC), a layer-two Ethereum (ETH) scaling solution noted for its quick transaction speeds and low gas prices, announced the debut of Plonky2, a zero-knowledge scaling system that claims to be the quickest in the world, on Monday.

On layer two, zero-knowledge algorithms guarantee that everything is accurately computed and deliver the succinct proof to Ethereum without sending the complete data. Instead of each miner (or staker) manually validating each uploaded transaction, zero-knowledge allows for the verification of simplified rolled-up proofs, dramatically speeding up the entire network.

According to Polygon, in 2014, recursive zero-knowledge proofs were mostly theoretical. It took roughly 120 seconds to manufacture them in 2019. In 2020, that time will be reduced to 60 seconds. Plonky2 is set to allow such proofs to be created in 0.17 seconds this year. The network’s creators claim that it is 100 times quicker than existing options.

Key Takeaways (MATICUSD)

• Polygon has pledged a $1 billion investment in the development of zero-knowledge technologies. Polygon joined with the zero-knowledge blockchain Hermez Network in August for $250 million in MATIC tokens. It announced the allocation of up to 250 million MATIC tokens to a transaction with cryptographic company Mir in December. That company specializes in the PLONK and Halo subcategories of zero-knowledge algorithms, the latter of which does not require a trusted setup at all for proof verification.
• Four huge MATIC transactions by whales have been reported by WhaleStats. The most recent purchase was made by an Ethereum whale who paid $2,495,491 for 1,149,996 MATIC. Another ETH whale ranked 614 on WhaleStats purchased 7,137,000 MATIC, which is worth $15,415,920.

MATIC Price Analysis

Fear & Greed Index: 22, Fear

All-time High: $2.92

ROI: 51274.86%

24h change: 7.15%

7d change: -4.31%

Market Cap: $16,628,374,414

Circulation Supply: 7,162,892,403 MATIC

Total Supply: 10,000,000,000 MATIC

Daily Chart Breakdown of MATICUSD

Source: TradingView

As predicted in our previous post on MATIC Price Analysis, the MATIC pricemoved just like we predicted. MATIC’s price went up to $2.35 with a strong rally and gained over 8% in 2 days. Now, the price stalls over $2.30. Market sentiment seems bullish on the daily chart and we might see a move towards all-time highs or beyond, to the next psychological level of $3.0. However, there might be corrections on the way.

4h Chart Breakdown of MATICUSD

Source: TradingView

MATIC’s price had an aggressive surge towards $2.35 and has been in sluggish corrections for the past few hours. A break and close above $2.38 on 4h, will push the market to the next level which is $2.65. However, the market could also correct itself towards $2.17 before a further rally.

1 Hour Chart Breakdown of MATICUSD

Source: TradingView

On the 1h timeframe, MATIC’s price is in a rectangular corrective structure around $2.35. A break above this corrective structure will push the price towards $2.65 and a break below will send the market towards $2.17.

Final Thoughts

With huge investments coming in MATIC and the collaborations of the Polygon blockchain network, looks promising. Although, the unpredictable cryptocurrencies have always a surprise coming your way, as you cannot be correct 100% about the markets.