In the ever-evolving landscape of blockchain technology, staying ahead of the curve is crucial. This mantra rings especially true for Ethereum Layer 2 scaling solution Polygon, which has recently made waves with the announcement of a significant upgrade to its zkEVM chain. This eagerly awaited development is scheduled to take place on Today at 11:00 a.m. UTC. The Polygon team also recently announced a new strategic partnership.
These positive developments resulted in MATIC’s price surging by more than 5% during the past 48 hours. However, traders were quick to take profit - forcing the altcoin’s price to pull back just under 1% throughout the previous day of trading. Nevertheless, technical indicators suggested that MATIC may soon break out of a medium-term negative trend. If this bullish thesis is validated, the altcoin’s price could climb as high as $0.7225 over the course of this month.
Polygon’s Pivotal Upgrade
The forthcoming upgrade, as unveiled by Polygon, is poised to be a transformative moment for the network. While exciting, such updates often come with their fair share of challenges, and users should brace themselves for a brief period of network hiccups. However, these short-term inconveniences are considered a small price to pay for the long-term benefits that this upgrade promises to bring.
Polygon has aptly described this upgrade as a pivotal one, as it will usher in the latest versions of two critical components: the Node and Prover.
Node Component: The Node component plays a pivotal role in ensuring the overall stability and performance of the network. In the world of blockchain, stability is paramount, as it directly impacts user experience and trust in the platform. This upgrade promises enhanced stability, which will not only make the network more reliable but also attract more users and developers.
Prover Component: The Prover component, on the other hand, contributes to the functionality of the protocol as a whole. Functionality is the lifeblood of any blockchain network, and improvements in this aspect can open up new possibilities for decentralized applications (dApps) and smart contracts. By bolstering the Prover component, Polygon is signaling its commitment to staying at the forefront of innovation and adaptability.
One of the standout features of Polygon's zkEVM chain is its upgradability potential. This characteristic is a fundamental building block in the world of Layer 2 protocols on Ethereum. In a landscape that evolves as rapidly as blockchain technology, the ability to adapt and incorporate new technological innovations is vital for longevity and relevance.
The excitement surrounding this upgrade is not without a touch of skepticism, as is common with any significant protocol update. Innovators and users alike are often apprehensive about the potential short-term disruptions that could arise. This sentiment has been mirrored by Shibarium, a project that faced congestion and a temporary suspension during its initial launch, underlining the challenges that can arise during protocol upgrades.
However, Polygon's commitment to providing a seamless upgrade experience and its meticulous planning should inspire confidence in the community. The brief network hiccups anticipated during the upgrade are a small sacrifice to ensure that the network remains competitive, secure, and user-friendly.
Polygon Announces New Partnership
In related news, Polygon recently announced its latest strategic partnership with none other than Casio, the renowned electronics manufacturer. This collaboration is set to introduce something groundbreaking - G-Shock watch non-fungible tokens (NFTs) through a Layer 2 scaling solution.
The centerpiece of this collaboration is the "creator pass," a golden ticket for innovators eager to explore the G-Shock NFT universe. Holders of these passes will gain exclusive access to a dedicated Discord channel for the project. Moreover, there is a bounty of 15,000 NFT-based G-Shock creator passes up for grabs, and the claiming begins on 23 September 2023.
The distribution of these passes unfolds in two stages: Casio's loyal customers with a Casio ID can jump into the action during the predistribution phase from 23 September 2023 to 26 September 2023. Afterward, the general public can participate in the NFT distribution phase from 26 to 29 September 2023.
Casio's rationale behind choosing Polygon as its blockchain partner is clear: simplicity and inclusion. Polygon's Layer 2 scaling solution offers a user-friendly environment, ensuring that the G-Shock NFT passes are accessible to as many people as possible, aligning with Casio's vision of widespread participation.
The bullish outlook for Polygon extends beyond this partnership alone. Over the past year, Polygon has attracted a growing number of institutions venturing into the broader Web3.0 ecosystem to launch their NFT engagement passes. As more projects and organizations embrace Polygon, the demand for MATIC is poised to surge in the near term. It is important to note that Polygon is currently trading at approximately 81% below its all-time high (ATH), indicating ample room for growth. With a series of strategic partnerships across various sectors, Polygon is well-positioned to accommodate the impending expansion in its ecosystem.
Price Performance
At press time, the cryptocurrency price tracking website CoinStats indicated that the native token of the Polygon network, MATIC, was changing hands at $0.553537. This was after the altcoin suffered a slight 24-hour loss of 0.98%. This negative daily performance had pushed MATIC’s weekly performance further into the red zone as well, taking the cryptocurrency’s total weekly loss down to -3.95%.
Price chart for MATIC (Source: CoinStats)
MATIC also weakened against the market leader Bitcoin (BTC), and dropped 0.84% against the cryptocurrency over the past 24 hours. Subsequently, 1 MATIC token was estimated to be worth 0.00002151 BTC at press time.
Technical Overview
Daily chart for MATIC/USDT (Source: TradingView)
From a technical standpoint, MATIC’s price had rebounded out of the support zone between $0.5250 and $0.5500 over the past 48 hours. Subsequently, the altcoin’s price was also trading above the 9-day EMA line at around $0.5549 as well. If the cryptocurrency is able to close today’s daily candle above this technical indicator, then it may attempt to flip the 20-day EMA line into support. Thereafter, MATIC’s price could potentially break out above the upper level of the negative medium-term channel that had formed on MATIC’s daily chart over the past few weeks.
If MATIC is able to close a daily trading session above the bearish price channel, then it may have the momentum needed to overcome the next significant threshold at $0.65. Thereafter, the altcoin will have a clear path to rise to $0.7225 in the following few days.
However, this bullish thesis will be invalidated if MATIC’s price drops below the aforementioned support level between $0.5250 and $0.5500 within the coming 72 hours. In this scenario, sellers may continue to exert pressure on the cryptocurrency’s price, which may lead to it retesting the crucial support level at $0.4475 throughout the course of this month.
Disclaimer: Coinpaper does not recommend that any cryptocurrency should be bought, sold, or held by you. Always conduct your own research and consult your financial advisor before investing in any digital asset.
