The price of Polygon (MATIC) has at press time dropped by around 2.4%, after hitting a new all-time high above $2.5, in a day in which the broader cryptocurrency market is crashing and bitcoin itself has already lost 16% of its value.
According to available price data, Polygon is currently trading at $2.07 and has been slowly dropping from its previous all-time high of $2.5. In comparison, bitcoin is down 16% to $38,000 and is now down over 40% from its $63,000 all-time high seen earlier this year. Polygon’s small drop comes after rising about 450% over the last 30 days.
The price of MATIC has been going up as it has integrated a number of popular decentralized finance (DeFi) projects onto its platform and as transactions being processed on its network keep on rising. According to data from a MATIC network explorer, the Polygon network has processed 84.4 million transactions in total, and is currently processing 5.2 million transactions per day.
Transactions on Polygon cost only a few cents. In contrast, the cost for transactions on the Ethereum blockchain hit a new all-time high this week above $64 on average, before plunging to $19.75 at press time.
Polygon aims to provide faster and cheaper transactions on Ethereum using layer-two sidechains – blockchains that run alongside the main ETH blockchain. Users can deposit ETH to a Polygon bridge smart contract and interact within the Polygon chain with them, to later withdraw them back to the main Ethereum network.
Polygon is standing out in the cryptocurrency space because of its resistance to the sell-off affecting other cryptoassets. Ethereum’s price has dropped from a $4,300 all-time high to $2,700 at press time, while BNB dropped from $670 to $390.
The cryptocurrency space has, in total, lost around $300 billion. Some have been buying the dip, including Nasdaq-listed business intelligence firm MicroStrategy, which invested $10 million in bitcoin at $43,600.
As CryptoGlobe reported Tom Lee, managing partner at Fundstrat Global Advisors, has revealed he is still confident in bitcoin’s price performance this year, despite Elon Musk’s reversal on the flagship cryptocurrency and the recent correction. Lee upped his BTC price prediction for the year from $100,000 to $125,000.
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