Ethereum scaling solution Polygon was one of the biggest beneficiaries as cryptocurrencies continued to recover Tuesday from last weekend’s massive sell-off.
At first, the Polygon Network decided to give loans in Bitcoin and Ethereum. By Monday morning, however, the network’s native token, MATIC, had appreciated by about 40 percent. Its value rose from $1.79 to $ 2.50 in 24 hours.
The rise can be attributed to the fact that more consumers have learned about Polygon’s lower prices and greater scalability.
There was a lot of speculation about what the firm had referred to as an “exciting news” that would be announced on Dec 9 at Polygon’s virtual “zk day”.
The goal of this event is to discuss applications of zk-STARKs and zero-knowledge (ZK) proofs, a kind of cryptography that can verify whether or not a given assertion is genuine without revealing any data.
Polygon is a platform for developing and connecting Ethereum-compatible blockchain networks with lower transaction fees and faster speeds than Ethereum.
The ZK-rollups are a method for scaling Ethereum without compromising decentralization and security.
ZK-based Ethereum scalability technologies include MatterLabs’ zkSync and StarkWare’s StarkNet.
The ZK Chain project, for example, completed two $50 million funding rounds in November, with Andreessen Horowitz and Sequoia Capital leading the rounds for zkSync.
In August, Polygon amalgamated with ZK protocol Hermez for $250 million, bringing ZK rollup capabilities to Polygon for the first time.
In September, Polygon announced a collaboration with audit firm Ernst & Young to create Polygon Nightfall, a privacy-compliant ZK-rollup intended for business usage.