At the time when every other cryptocurrency is suffering due to the panic created by Elon Musk’s announcement, there is one cryptocurrency which has been soaring high. In this article, we take a look at that particular one suggesting you to keep an eye on the potential ray of hope amidst this slightly gloomy time for crypto community.
Crypto community facing a turmoil
It has been four days of Elon Musk announcing that people can no longer buy Tesla cars using Bitcoin since the latter uses a huge load of energy for its transaction and mining purposes. All the major cryptocurrencies are being traded in red since that announcement. Bitcoin has lost almost 24% of its value from the previous week, Binance Coin 23% Ethereum 15%, Dogecoin 10% while Litecoin has seen the biggest dip among major altcoins with 29% weekly crash in its prices.
At this time of uncertainty and panic, there has been one cryptocurrency which seems to be unfazed by all the chaos surrounding it. Polygon (MATIC) which is ranked 19th after Ethereum Classic and before THETA has seen a 76% weekly growth in the prices at the time of publishing this article.
Polygon’s current price is $ 1.64 and even though it has fallen around 8% on a daily basis, the 76% weekly rise is a positive sign.
Why is Polygon (MATIC) going up?
MATIC is believed to be one of the most exciting and promising cryptocurrencies which have come out this year. After its merger into the Polygon network, the network is called Polygon while the coin is still called MATIC and many experts believe it has excellent potential.
Another reason for prices to be going up is that it serves as a highly adaptable layer 2 network for Ethereum which helps in reducing the transaction fees for users who want to transfer cryptocurrencies. Since the Ethereum transaction got highly congested, the miners increased ETH Gas limit to almost 15 million to relieve some of the load on the network.
Yet the network is highly congested since the users have increased with the rising prices of Ether. This means the transactions have got more expensive with the increase in the transaction fee and it still takes a lot of waiting time for transactions to be completed successfully.
To avoid both of them, users shift to MATIC which consumes lot less time and takes less fee. Even though Ethereum’s prices are falling, cryptocurrencies which complement or compete with Ethereum are seeing an increase in their values. Aave has seen 18% growth in this 7 days period.