By: Ekta Mourya
As transaction fees on Ethereum continue to rise, layer-two scaling solution Polygon(MATIC) has become increasingly relevant. MATIC’s relative social and market activity has increased since Coinbase’s integration announcement.
More exchanges and institutions are now turning to Ethereum scaling solutions to tackle the rising gas fees. The world’s second-largest exchange, Coinbase, recently announced the integration of MATIC as its layer-two solution. The exchange expects to level the playing field for retail traders by offering reduced fees and transaction times.
Traders expect to see a rise in transactions on the Polygon network following the integration by Coinbase. As of September 2, the number of daily transactions is 6 million, up 42% in the past 30 days based on data from Dune Analytics.
The increase in on-chain activity is indicative of the rising interest of institutional and retail traders.
Polygon: Transactions on the network
Alongside an increase in on-chain activity, the altcoin’s price has rallied consistently. MATIC is trading at the $1.44 level, posting nearly 40% gains within a month. Analysts expect the rally to be a prolonged one.
Based on IntoTheBlock data, 74% of wallet addresses holding Polygon’s MATIC are currently profitable. This implies that the altcoin has support at the price levels where these wallet addresses accumulated. Therefore, the likelihood of a price drop is relatively low.
The altcoin analyst behind the Twitter handle @AltcoinSherpa states that $1.70 is a level to watch out for.
FXStreet analysts have predicted that Polygon has bottomed out and MATIC is showing a bullish pattern. The altcoin is primed for at least a 57% upswing, which sets the target at $2.56.