Coinbase-backed cryptocurrency rockets up by 75% in a single day
With all the action happening in the crypto market, something most people would have missed is a cryptocurrency called MATIC. Bitcoin rose from 5000 to 8000, a 60% percent increase over several weeks, but MATIC experienced a 75% increase in just a single day of trading. The ROI on MATIC seems to be unbelievable taking into the fact that it is a relatively unknown and new product in the market. However, with this event, it is sure to catch the attention of many in the days to come.
One of the most significant issues with blockchain technology is the limit on block size, especially on coins like Bitcoin. One obvious solution is to increase the size of the block, but this comes at the cost of the size of the entire blockchain becoming too big, so the size of the blocks should be reasonable. One of the solutions to this problem is a side chain. Side Chains are emerging mechanisms that allow tokens and other digital assets from one blockchain to be securely used in a separate blockchain and then be moved back to the original blockchain if needed. Sidechains not only make the entire network faster but also make microtransactions like tipping a waiter possible.
More about MATIC
MATIC focuses on the scalability issue, and their solution is to use a side chain network on Ethereum. Matic Network (MATIC) is a cryptocurrency token issued on the Ethereum platform. It was launched on Binance launchpad, a token sale platform for innovative projects which helps tokens stand out in the already crowded market. A good majority of the tokens which were launched in the platform has shown excellent performance. MATIC was only released a month back and has since seen exponential growth in price. The most crucial fact about MATIC is that it can extend the side chain capabilities to any Ethereum based coins.
This was the official announcement given by MATIC on their Twitter:
“Matic Network has officially joined Binance Info’s transparency initiative. By sharing project-related information such as news and progress reports on Binance Info, Matic is contributing to keeping the community informed.”
The recent momentum in the market did influence the price a bit, but the most influential bit is the news of Matic joining Binance Info’s transparency initiative. Sharing project-related information such as news and progress reports on Binance Info, Matic is contributing to keeping the community informed. Binance Info aims to provide users with accurate and comprehensive crypto market data, news, and project rating reports. This would mean that unlike many other projects, users will be well aware of everything related to the project. Many hope that this would help the project succeed.
Another news which was favorable to MATIC was the fact that MATIC team was able to secure funding from Coinbase. This will involve Coinbase wallet providing support to MATIC, as well as MATIC providing sidechain capabilities to the Coinbase coin USD (USDC).
As with all coins that have recently skyrocketed in prices, pumping allegations were made against MATIC by a few people in the space too. Coin Divine, a crypto company, based in India, tweeted this on their profile:
“So insider trading is done, right ? @maticnetwork
U Prepumped the coin before releasing the news.
Dont u take any action on coins which perform insider trading ? @cz_binance @binance
Isnt it against the trading ethics ? @BittrexExchange @BitMax_Official @BithumbOfficial”
There is a long way for this coin to be mainstream. Even though it is technically feasible, there are similar projects out there. The partnership with Coinbase along with Binance will help it out a lot in the journey, also making it stand out from the crowd. Scaling has been a big issue with cryptocurrencies since its inception, side chains have been put forward as a viable solution to this problem. Several side chain solutions have already been deployed including Bitcoin’s own lightning network, but mass adoption hasn’t been achieved yet. With projects like MATIC, mass adoption of side chains might not be too far away.