The native token of Ethereum (ETH) scaling solution Polygon (MATIC), soared over 17% in the last 24 hours in tandem with the broader cryptocurrency market after Ripple’s (XRP) significant win in its legal battle against the United States Security and Exchange Commission (SEC).
Crypto Market Fires Up
As the crypto world revealed after Ripple scored a partial victory in its fight with the SEC, barring some tokens such as USD Coin (USDC) and Bitcoin Cash (BCH), most of the digital assets witnessed an exponential surge. Bitcoin (BTC) climbed 3.04%, whereas, Ethereum (ETH) leaped more than 7%, in the last 24 hours.
Meanwhile, the token-of-the-moment, XRP surged more than a staggering 67%, following the recent court ruling. The rest of the major altcoins also recorded explosive gains, including Cardano (ADA), and Solana (SOL) rising almost 26% and 30%, respectively.
Following the bull run, the global crypto market cap swelled 6.06% in the last 24 hours. In the same period, the total crypto market volume experienced a whopping 126% increase to $69.66 billion.
Why is Polygon Rising?
Amidst the rally, Polygon (MATIC) prices witnessed a tremendous uptick over the past 24 hours owing to several factors. According to CoinMarketCap, MATIC is up 17.70% over the day to hover at $0.85. While, in the past seven days, the digital token gained nearly 30%, indicating growing demand from traders and investors.
The rally seems to be driven by key factors such as – the positive court ruling for XRP, increased activity of decentralized applications (Dapps) on the Polygon Network, and the highly anticipated launch of Polygon 2.0.
Understanding the Factors in Details
On July 13, in a landmark legal victory for the entire cryptocurrency industry, a federal judge ruled that the sale of Ripple’s XRP tokens on exchanges and through algorithms did not constitute investment contracts.
As per the ruling, some sales of the XRP token did not constitute illegal securities sales. This outcome represented a positive development for the entire digital assets sector, triggering a bull run. It is likely the MATIC rally was a direct result of this development.
Secondly, the activity of Dapps on the Polygon Network has observed substantial growth in recent weeks. This development indicates that the network is possibly gaining traction as the go-to scalability solution for the Ethereum network.
According to recent data from DappRadar, the number of active Dapps on Polygon has surged by 47% in the past 30 days. Interestingly, earlier this year, the Polygon network become the second-largest blockchain gaming network in terms of unique active wallets (UAWs).
Last but not least, Polygon developers have revealed a technical upgrade for its native MATIC token as part of the Polygon 2.0 roadmap. The proposed upgrade introduces the POL token, designed to operate seamlessly across all Polygon protocols, including Proof of Stake (PoS), zkEVM, and Supernets.
This upgrade aims to enhance interoperability and expand the token’s utility within the network. The news of the proposal and the upgrade to the POL token seem to have fueled the bullish sentiment among holders, pushing the MATIC price to surge.
Proud to unveil POL, the proposed upgrade to MATIC! 💫
POL is a next gen, multi-utility token, designed to secure, align and grow the Polygon ecosystem.
We’re excited to discuss the proposal with the community. Only together we can build the Value Layer of the Internet! 🤗 https://t.co/si2LcnT1wC
— Mihailo Bjelic (@MihailoBjelic) July 13, 2023
Polygon Has Doubled Down on Partnerships
Besides these key factors, there are numerous other reason that seems to have contributed to this rally. Since the beginning of this year, the Polygon (MATIC) network has been on a collaboration spree, partnering with many leading companies. In June, crypto exchange, Kraken announced to launch of its non-fungible marketplace (NFT) marketplace on the Polygon Network.
Google Cloud will help accelerate adoption of core Polygon protocols w/ enterprise infrastructure & tools.
— Polygon (Labs) (@0xPolygonLabs) April 27, 2023
Recently, legendary American sports magazine, Sports Illustrated, unveiled a NFT ticketing platform, dubbed, “Box Office”, built on MATIC blockchain. Moreover, in April, Polygon Labs, the maker of the Polygon blockchain, inked a multi-year strategic alliance with Google Cloud, a suite of cloud computing services offered by Google, to accelerate the adoption of blockchain technology, making it easier for developers to build, launch and grow their Web3 products.
Thus, it can be concluded that these factors have played a vital role in pushing MATIC prices. However, whether the digital token will continue its bullish momentum or not will depend on the macroeconomic conditions, regulatory policies and the adoption level of the cryptocurrency.