MATIC Enters Correction Phase, Bleeds 8% in The Past Week

2023-12-20 14:11:57

After the market entered a shortened bleeding phase, it has since rebounded to a stable foothold in preparation for a possibly bigger rally by year’s end. However, some altcoins continued to trend downward with MATIC being one of them. According to Coingecko, the token is down almost 10% in the weekly timeframe.

Although the bears have a slight chokehold on MATIC’s market, there is some on-chain news that keeps the token afloat

Update On Polygon’s Chain Development Kit (CDK)

Polygon recently posted on their blog about the newest addition to their CDK. Gateway, a blockchain infrastructure-focused team, integrated cdk-erigon into Polygon’s CDK. According to the blog post, Erigon is a fast, high-efficiency node that will bring a better user experience for developers building on Polygon

Need for a Public RPC infrastructure in #defi? We got you covered 😎

Our team is happy to announce that we have become the RPC provider infrastructure for Stellar @StellarOrg /Soroban @SorobanOfficial Public RPC infrastructure. @gateway_eth head of infrastructure,… pic.twitter.com/c3jEMToFoP

— Gateway FM (@gateway_eth) September 28, 2023

“Erigon is known for being memory-optimized, and so is cdk-erigon. Compared to the zkNode on Polygon zkEVM (of which Polygon CDK is a fork), cdk-erigon uses 10x less disk space with +150x faster sync times on mainnet,” the Polygon team said in the blog post

MATIC market cap currently at $7.424 billion. Chart: TradingView.com

This new addition will attract more developers to the platform. It can already be seen happening, with six projects testing the new Polygon CDK with the cdk-erigon integration

Polygon also iterated that the will be available as an RPC node for the protocol’s zkEVM Mainnet Beta next year.

Positive News Overall, But What Now?

As of writing, MATIC bulls are trying to reverse the current downward trend that the token is on. However, they might need to settle for a lower, more stable price point around $0.7550. This will provide investors and traders with a stable jump-off point for higher gains before the year’s end

From MATIC To POL

But MATIC bulls should consider the current phase of the network. Last September, the Polygon dev team announced the implementation of Polygon 2.0, an upgrade that would change the network’s token from MATIC to POL. According to MATIC’s Coingecko page, the upgrade from MATIC to POL has been initiated on the Ethereum mainnet

Once the upgrade is in full swing, investors and traders will migrate their MATIC holdings to POL. This will inevitably harm the price as more and more investors will try to take value out of MATIC before it goes to the bin

For now, investors and traders should be cautious of any major decision-making as any big investing decision made now will hurt gains in the long run.

Featured image from Shutterstock

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