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MATIC Launches Set Positive Tone Ahead of Ethereum’s Dencun Upgrade

Published February 21, 2024 4:24 PM
Shraddha Sharma
Published February 21, 2024 4:24 PM
Key Takeaways
  • Polygon unveiled major releases and partnerships, including Polygon ID Release 6 and the launch of Humanity Protocol on Polygon CDK.
  • Polygon zkEVM is on the road to expanding support with the recent Etrog upgrade.
  • With the Ethereum Dencun upgrade on the horizon, L2 transaction fees are anticipated to decrease by 10x.

As the crypto industry awaits Ethereum’s Dencun upgrade, let’s focus on Polygon (formerly Matic Network), which is expanding into the Web3 space. It has made significant strides with the release of Polygon ID Release 6 and the launch of the Humanity Protocol on Polygon CDK, coupled with Polygon zkEVM’s recent upgrade.

Polygon’s Major Releases and Partnerships

Polygon recently unveiled Polygon ID Release 6 to become the most widely adopted digital identity solution. As per the release, it introduces Dynamic Credentials, a W3C specification enabling users to refresh expired credentials from their wallets seamlessly.

In addition, Humanity Protocol’s launch  on Polygon CDK marks another new partnership. Sandeep Nailwal, the co-founder of Polygon, emphasized the protocol’s potential to revolutionize blockchain applications by integrating verifiable credentials into a decentralized validator node network.

The Ethereum Dencun Upgrade

As the Polygon positive price action continues in the market in February, Polygon zkEVM integration should also be in focus before the upgrade within the larger ecosystem.

Meanwhile, Ethereum’s Dencun upgrade expects improvements in Layer 2 transaction fees, according to IntoTheBlock . With fees anticipated to decrease by 10x for L2s, from an average of $0.23 to a much lower amount, the upgrade is poised to enhance affordability and efficiency across the Ethereum ecosystem. The development is promising for the broader market.

Polygon zkEVM
Polygon zkEVM Gas | Source: Polygonscan

Based on Token Terminal data, Polygon’s 180-day price action in 2024 has been positive. The annualized fees and revenue have taken a hit, but the active weekly and daily users have seen double-digit growth.

Broader Market Could Remain Positive

With positive performance indicators such as increased Total Value Locked (TVL) and growing user engagement, Polygon’s trajectory in 2024 is indicative of its potential.

MATIC’s recent launches and partnerships, combined with the impending Ethereum Dencun upgrade, are positive for the broader market and something that investors should keep an eye on.

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