Ethereum scaling tool Polygon’s MATIC token has surged 12% over the past 24 hours, continuing its strong momentum this year.
The rally comes amid a January upturn in the crypto market that has seen Aptos’ APT token skyrocketing more than 400%, Fantom’s FTM jumping about 145% and bitcoin rising nearly 40%.
The Polygon platform ranks second behind Binance’s BNB chain recording 344,000 daily active users (DAU), ahead of Solana and Ethereum.
Polygon’s announced partnerships and launches over the last month that have increased DAUs may also be behind the price increase, along with anticipation of Polygon’s mainnet launch of its zero-knowledge EVM. The mainnet launch is scheduled for early this year. Its zk-EVM public testnet went live in October.
“We’re starting to see users and interest come back to these kinds of networks and seeing activity again,” Charles Storry, head of growth at crypto index platform Phuture, told CoinDesk.
“There’s also a lot of projects that have built on top of Polygon that haven’t released their tokens yet, which will be coming out soon and add to the already increasing activity levels,” Storry added.
Polygon currently has around $1.1 billion total value locked (TVL), according to data from DeFiLlama.
“We are seeing mass TVL increases for riskier projects and early stage applications,” Storry said. “In a bear market investors are more conservative and don't want to take on huge risk, but now prices have picked up a little, they are more open to newer and riskier ecosystems like Polygon.
“We will see more of that come through as the market continues to pick up.”
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.