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News

Polygon 2.0 Takes Crypto to the Next Level, Says FalconX

July 12, 2023 - Around 2 mins mins to read

Key Points:

  • Polygon’s MATIC token is up 12% in July, outperforming BTC and ETH.
  • MATIC’s strong performance is linked to speculation around the upcoming Polygon 2.0 network update.
  • Polygon Labs is collaborating to establish a “value layer” and improve tokenomics and governance for Polygon 2.0.
Polygon is showing signs of a comeback this month after a poor performance in the previous months.
Polygon 2.0 Takes Crypto to the Next Level, Says FalconX

The native token of the Ethereum scaling network has shown a 12% increase in July as of Tuesday afternoon, while Bitcoin remained flat and Ether saw a decline of 3.2%. Meanwhile, cryptocurrencies tied to layer-2 solutions Arbitrum and Optimism saw respective declines of 3.5% and 8.9% over the same period.

Industry experts speculate that MATIC’s comparatively strong performance could be attributed to a major network update, Polygon 2.0. This major upgrade, which is labeled as a “vision for unlimited scalability and unified liquidity, powered by Zero-Knowledge technology,” per the project’s roadmap, is the most relevant technical announcement in the industry at the moment. FalconX research note’s head of research, David Lawant, stated that “We expect MATIC to keep closing its gap versus peers as more details of the upgrade roadmap become more apparent to the market.”

Polygon 2.0 Takes Crypto to the Next Level, Says FalconX

Polygon Labs collaborated with developers, researchers, node operators, validators and other stakeholders to establish the upgrade roadmap, which is expected to be implemented in several phases. The first phase is geared towards establishing what’s dubbed a “value layer,” which mirrors how the “rest of the internet operates.” Other architectural overhauls, including a validium, are intended to reduce costs and boost transaction throughput. There are also plans to revamp tokenomics and governance processes.

Polygon 2.0 Takes Crypto to the Next Level, Says FalconX

Despite MATIC’s recent gains, it still has a ways to catch up as it is down 3.2% over the year to date, underperforming against BTC, ETH, ARB, and Solana, all of which are up more than a third. However, with the beginning of the implementation of Polygon 2.0, MATIC could potentially catch up to its peers and become a leading cryptocurrency in the market.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

FalconX

MATIC

MATIC Investors

Polygon

Polygon 2.0

Author

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.