Polygon, Ethereum's Layer-2 scaling solution, is taking the limelight in the cryptocurrency sphere. Over the past week, Polygon's native cryptocurrency MATIC has seen a strong 50% rise after a major correction earlier in the month.
As of press time, MATIC is trading up 18% to one quotation of $ 0,60 and with a market cap of $ 4,7 billion. The reasons behind the current price rally of MATIC are manifold. On Thursday, June 23, the US exchange Coinbase announced support for transactions on Polygon. The announcement stated that:
Over the next month, eligible Coinbase customers will be able to send and receive ETH, MATIC and USDC on Polygon. The integration with Polygon marks the first time that Coinbase has enabled the ability to send and receive these assets on an L2 or sidechain.
The latest decision comes as the gas tariff on the Ethereum blockchain skyrocketed due to massive network congestion. As a result, projects have moved to more accessible platforms such as the Polygon blockchain network.
However, funding portfolios on networks like Polygon is usually expensive and time-consuming. The cryptocurrency exchange noted that:
Coinbase is reducing the time, effort and high fees of today's experience by enabling customers to convert fiat to crypto and fund their Polygon and Solana wallets in minutes and at a fraction of the cost. "
Polygon Whales (MATIC) are shopping
One of the other reasons behind the rally in Polygon's native cryptocurrency, MATIC, is the strong build-up of whales over the past few weeks. Additionally, on-chain data provider Santiment reported that:
MATIC's sharks and whales have had a pretty strong build-up tendency for about six weeks. Holders levels ranging from 10k to 10m of coins have collectively added 8,7% more to their purses over this time frame.
At the same time, Polygon has achieved important milestones in terms of carbon neutrality. As part of its environmental commitment, Polygon has recently entered into a partnership with KlimaDAO. Polygon also announced the purchase of carbon credits for 104.794 tons of greenhouse gases, worth $ 400.000. This equates to Polygon's total carbon debt since its inception in 2019. Commenting on this development, Polygon co-founder Sandeep Nainwal said:
Our world is facing an environmental crisis, and the blockchain industry must do more than promise to stop aggravating the problem. Achieving carbon neutrality is an important first step, but there is still a lot of work to be done. Polygon will lead the way as the entire industry moves to become a net positive for the environment.
With the recent launch of the Polygon ID integration, Polygon is taking a step towards secure DAO governance, as well as managing user identities securely.