Can Polygon [MATIC] take its winning streak to new highs as ZK becomes ETH compatible?
Polygon [MATIC] has been making headway into scaling Ethereum [ETH] since the day it launched with improved speeds and significantly reduced costs. Challenges are a part of every journey. The challenge wherein ZK rollups smart contracts limiting users as these contracts tend to be slow and expensive and incompatible with ETH’s code poses a great issue.
However, Polygon intends to fix this issue with the new ZKEVM.
Polygon makes ZK Ethereum compatible
Making it Ethereum compatible, Polygon ZKEVM allows developers to build on Polygon ZKEVM. This is the same way one would on Ethereum itself. Any Ethereum smart contract and tooling that is compatible with Ethereum can also be used on Polygon ZKEVM. This way, one can leverage the capabilities of the Ethereum network for far lower cost and much greater speed. While this is the initial game plan by Polygon, the real question lies around the impact this development. Would users benefit from the increased demand that ZKEVM would potentially bring? Let’s find out…
Polygon is one of the leaders when it comes to settling transactions at a quick and cheap rate, and even with transactions currently costing over 260 Gwei, they stand to be far more inexpensive than Ethereum. This is because the base of the fees is in MATIC and not ETH, and with the altcoin trading at $0.86, the fees will keep at a low.
At the moment, MATIC is on a hot streak of recovery, noting a 117% incline from its lows up until a few days ago. Although the altcoin has observed a 9% decline over the week, it was solely due to the excessive buying pressure that resulted in MATIC being overbought.
The Relative Strength Index (RSI) verifies this with the indicator crossing the 80.0 thresholds. As the altcoin cools down, it will be able to bounce off from the $0.742 support and rally towards $1.
Currently, MATIC is in its best state in almost three months, with more than $40.77 million worth of tokens being moved around in profit. As more details of Polygon’s efforts are revealed, this momentum would prove to be beneficial for the investors.