Many cryptocurrencies have had a positive run this month, but one of the tokens that stood out positively was Polygon (MATIC). MATIC is up 19% over the past week to reach $1.19. As a result, the coin is up more than 50% in January. Currently, MATIC is the tenth largest cryptocurrency by market capitalization. MATIC has a total market capitalization of $10.6 billion.
What is Polygon?
Polygon is a sidechain that runs alongside Ethereum and aims to improve upon its counterpart by offering faster transactions and lower fees. In addition, it tries to serve as a platform for interoperable blockchains.
Trader converts 84 thousand dollars to 4 million dollars
The Twitter account @lookonchain pointed to one wallet that was making significant returns trading MATIC tokens.
The Polygon whale bought 4 million MATIC from the cryptocurrency exchange Binance in September 2020. Here he paid about $84,000 at the time. Two days ago, the whale sold its tokens for $5.2 million.
Although the sale included more MATIC tokens than the original purchase of the wallet from Binance, the trader still had a return of about 50 times the original price he paid for the 4 million MATIC.
December 2021 peak
However, the MATIC price, despite recent rebound, is nowhere near the peak it saw in December 2021. At the time, currency was trading at $2.92 each. That means that at the time of writing, the price of the coin is still about 60% lower than at its all-time high. At the highest price, the 4 million in MATIC the trader bought in 2020 would have been worth $11.7 million.
The MATIC pricing action comes as Polygon prepares for an upgrade first announced in July last year. Polygon co-founder Sandeep Nailwal recently tweeted that Polygon’s zkEVM update has an official date and will be launched soon.
Polygon’s zkEVM is a scaling solution compatible with existing smart contracts on Ethereum. These contracts use the cryptographic method of zero-knowledge proofs to more efficiently verify large batches of transactions.
Zero-knowledge proofs are used in the crypto world to prove that a statement is true. They do this without disclosing the content or the steps taken to establish a particular statement as true.
When Polygon announced it would launch its zkEVM, Polygon co-founder Mihailo Bjelic said the update could bring Ethereum on par with global payment processor Visa in terms of how quickly transactions can be processed.