Polygon – Unpacking what execs are saying about MATIC, EIP-4844

    Polygon introduced zkEVM amid initial criticism
    Despite setbacks, MATIC may be in for a potential uptrend

Polygon has risen as a key contender, most notably as an leading layer-2 (L2) scaling option for Ethereum. With its sophisticated technology and unwavering commitment to improving Ethereum‘s capacity, Polygon offers multiple solutions including sidechains, zk-rollups, and optimistic roll-ups. This demonstrates Polygon’s ability to address Ethereum’s scalability challenges and pave the way for broader adoption of decentralized applications (dApps) and Decentralized Finance (DeFi).

On March 22, there was an interruption in Polygon’s zkEVM network due to a reorganization on the underlying Ethereum network at Layer-1. This reorg resulted in inconsistencies within the network, resulting in transaction issues and incorrect nonce responses. Urgent actions were required to rectify the situation, highlighting the importance of strong security measures.

Regarding the previously mentioned incident, Brendan Farms, Polygon’s co-founder, stated during a recent interview on the Unchained podcast.

In the Polygon ZKM rollup, certain choices were made concerning the client and utilizing a custom client. Consequentially, we’ve amassed some technical debt which we are now working to resolve.

A question of resilience

It’s important to mention that MATIC experienced a 4.30% decrease in value over the past 24 hours. Yet, recent developments may indicate an upcoming price increase based on chart analysis. Intriguingly, certain experts claim that MATIC has surpassed the boundaries of a symmetrical triangle formation – An indication of optimistic market outlook.

Echoing similar sentiments, @Defiwayapp noted,

“Meet the new top of the most bridged blockchains for 9th of April by #defiway – 1) #Polygon 18%…”

Additionally, an X user @three2four7 also added,

“On the blockchain, Total Value Locked (TVL) in decentralized finance may not tell the complete story, but currently, Layer 2 solutions appear to be leading the way. Notably, #ARB, #BLAST, #BASE, and #OP. During the previous bull market, #MATIC experienced a meteoric rise of over 10000%. Among these Layer 2 projects, which one could replicate such growth during this upcoming bull run?”

Despite a downturn in MATIC‘s price trend over the past few weeks, the cryptocurrency has been pointing upwards since October 2023. Furthermore, Polygon remains confident about its ZKM roll-up project, expecting continuous growth and maturation in the long run, even amidst temporary setbacks.

Remarking on the same, Farme added, 

“We’re following a similar path to Arbitrum and Optimism, but with a positive outlook. I’m confident and hopeful for the long-term success of ZKM rollup.”

Market trends and the roadmap ahead 

According to AMBCrypto’s assessment, the MVRV ratio of MATIC stood at -6.54%. This figure suggests that selling tokens could result in a loss. However, history shows that such negative readings have often been followed by significant price increases. As a result, it might be worth considering purchasing MATIC tokens before the next market upturn.

As far as the short-term roadmap is concerned, Farme noted,

In the near future, transitioning to new technology like EIP-4844 for proof verification is expected to bring about a significant cost reduction of up to 20 times. This shift away from current methods is an encouraging development.

Polygon Labs CEO Marc Boiro went on to add,

“Introducing Polygon Proof of Stake (POS) into EigenLayer will likely hold significant value for other chains within EigenLayer.”

Joining EigenLayer, Polygon intends to streamline the process of obtaining liquidity for developers, enabling them to devote more time and resources to building their products. In turn, this change may decrease the complexity and excessive speculation prevalent in L2 ecosystems, fostering the growth of substantial projects instead.

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2024-04-10 20:24