This Coinbase-Backed Cryptocurrency Surged 75% in a Single Day


By CCN: The cryptocurrency market has been awash in bearish sentiment on Monday, with Bitcoin failing to maintain the $8,000 mark and most of the other top 20 coins moving in a sideways or downward trend.

Nonetheless, one lesser-known crypto token isn’t intimidated by the market gloom, and it took advantage of one concrete announcement and one wild rumor to surge more than 75% in a single day.

Ethereum Scaling Project Rallies More Than 75%

The Matic cryptocurrency exploded by as much as 76% on Monday. | Source: CoinMarketCap

Matic Network, a blockchain project aimed at scaling Ethereum, rose as much as 76% to $0.032 on the day. Shortly before 16:00 ET, the cryptocurrency traded at $0.031 with a circulating market cap of $66.8 million.

Matic’s daily trading volume of over $250 million exceeded the daily volume of larger projects like Cardano, Monero, and IOTA.

Since the start of May, the coin has gained over 610%.

What is Matic Anyway?

The key focus of Matic Network’s blockchain solution is scalability – the startup provides an off/side-chain scaling tool for existing networks like Ethereum to ensure a better user experience in the context of dApps.

The cryptocurrency aims to help the Ethereum network scale. | Source: Matic

The ecosystem will incorporate a proprietary digital wallet, payment APIs and SDKs, ID solutions, and other products that will enable developers to build and migrate dApps developed on base platforms such as Ethereum. The network will use a modified version of Plasma with Proof-of-Stake (PoS)-oriented side chains.

What Triggered the Crypto Token's Rally?

The project is very young, having been launched on Binance less than a month ago. Binance accounts for over 98% of the token's trading volume. Matic is one of several Binance Launchpad coins that has shown impressive returns.

Earlier today, Matic revealed that it had joined Binance Info’s transparency initiative, which suggests investors would be regularly updated about the progress and state of the project.

Now the community hopes that Matic will get listed on Coinbase, especially after the team announced last month that it had secured funding from Coinbase Ventures.

The partnership will see Matic integrate another Coinbase-backed cryptocurrency - USD Coin - on its sidechains. On the other side, Coinbase wallet users will be able to use the Matic network to transfer and trade digital assets.

While investors believe the next logical step is a Coinbase exchange listing, some members of Matic’s Telegram community are afraid that the project won’t benefit from such an outcome as - to quote one user - Coinbase “killed 0x.”

Editor's note: The article is updated to accurately represent the value of the crypto asset.

This article was edited by Josiah Wilmoth, Samburaj Das.

Last modified (UTC): May 21, 2019 6:43 AM

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Anatol Antonovici

Anatol Antonovici is a crypto journalist and financial writer with over five years of experience. He has covered crypto, blockchain, and security token news on a daily basis while working for leading crypto news portals like Cryptovest and U.today. Previously, he served hedge funds, asset managers, and Forex brokers, contributing with financial reports and articles.

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