The launch of 0xPolygon’s ZKEVM has put the Ethereum and Polygon ecosystems on the brink of a new era – the ZK scalability season. For those unfamiliar, ZK (Zero-Knowledge) scaling is one of the most recent breakthroughs in blockchain technology, allowing users to transact privately and securely while still maintaining a decentralized consensus.
For beginners, ZKEVM is a decentralized Ethereum Layer 2 scalability solution. Instead of using blockchains, it uses cryptographic zero-knowledge proofs to offer validity and quick finality to transactions off-chain – this is known as a ZK-Rollup.
Deeper into the architecture, there are 4 pillars to ZKEVM: zkNode (comprised of Synchronizers, Sequencers & Aggregators, RPC), Consensus Contract (PolygonZkEVM.sol), zkProver, and LX-to-LY Bridge. The goal behind these four components is to enable large-scale scaling of the Ethereum blockchain while allowing users to maintain privacy and security.
The zkNode-Synchronizers are responsible for getting all of the data (transactions) from the sequencers and all the data posted by aggregators (validity proofs). This allows a single node to access all transaction and validity data, quickly verifying transactions and validity proofs. The Synchronizer then stores this data in a database and shares it with the rest of the network.
Given the game-changing nature of ZKEVM, MATIC prices could soon be in for a massive surge. Not only is ZKEVM more efficient and cost-effective than traditional blockchains and it will open up new opportunities for businesses to build applications and services on the Ethereum blockchain.
The development will economically incentivize users to post valid transactions in order to profit the most from them, as well as provide a transaction pool with a sorting algorithm to choose the most profitable transactions.
Users who publish a series of transactions on ZKEVM will be paid a fee in MATIC for their services. With ZKEVM’s potential to revolutionize the Ethereum and Polygon ecosystems, MATIC prices could soon be in for a massive surge. Now let’s look at Polygon’s recent price movements.
MATIC/USD Price analysis
Polygon is trading at $1.22 after falling sharply from a high of $1.43.The general market sentiment sell-off has seen most of the cryptocurrencies give in their recent gains in the first week of February.
The MATIC price is currently hovering just above an important support level at $1.19, which could provide strong support should the market trend turn bearish. If the bulls can break out of this level and reclaim higher territory, this could signal a bull run soon.
Meanwhile, the MACD indicator shows a bearish divergence, with the histogram bars turning red recently. This could indicate further losses for MATIC unless some positive news comes from either the 0xPolygon team or wider market sentiment shifts.
The momentum oscillators also show weak signals, with the RSI and Stochastic oscillators heading downwards. This could indicate that MATIC will likely remain range-bound in the coming weeks.
The Fibonacci retracement levels suggest that MATIC could drop towards the $1.14-$1.17 range or even further into the support level of $1.10 should buying pressure remain weak in the near future.
Overall, there are some underlying signs of weakness for MATIC price action due to the bearish market sentiment. However, with 0xPolygon’s ZKEVM still in the early stages of development and its potential to revolutionize the Ethereum and Polygon ecosystems, MATIC prices could soon be in for a massive surge.
