According to CoinMarketCap, the Polygon (MATIC) value was increased by nearly 27% to $0.55 within 24 hours after Polygon’s news of being carbon neutral. The coin’s trend is continuing to climb and was currently trading at $0.60 as of this writing.
The price is still below what it was at the beginning of the month when it was trading at $0.66, but considering the market downturn, MATIC’s price gain is sending out a positive vibe. It’s the 18th-largest cryptocurrency globally.
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According to CoinMarketCap statistics, Polygon’s value (MATIC), increased roughly 50% in seven days. On the other hand, the leading cryptocurrencies, like Bitcoin and Ethereum, saw a week’s decline. Polygon plummeted almost 80% after it peaked in 2021 at $2.92. Although it is still 50% higher than this month’s low of 0.31 on June 18.
MATIC Network, which was originally created over the Ethereum Network, is now enhanced using Plasma-based sidechains to protect asset security. MATIC Network’s main goal, which is called a Layer-2 blockchain-agnostic Layer-2 scaling system, was to allow safe and scalable blockchain transactions.
The Main Factor Driving Polygon’s Matic Value Upward
Mainly two catalysts appear to be the reason for Polygon’s increasing value. Nevertheless, the most important one is Polygon’s recent announcement that it has retired $400,000 worth of carbon credits, turning the company carbon neutral.
As a result, the native token’s value has increased substantially. Indian crypto exchange WazirX’s Trade Desk also claims that:
Polygon (MATIC) recently achieved carbon neutrality, which is a balance between emitting carbon and absorption carbon. MATIC has seen a 30% increase in value over the past few days. MATIC’s hourly MATIC pattern has broken out of its ascending triangle sample. At $0.73 degrees is the predicted resistance.
Polygon claimed in a blog that they have become carbon neutral through their collaboration with KlimaDAO.
In helping to implement the first phase of Polygon’s long-term commitment to sustainability, KlimaDAO, in partnership with Offsetra, analyzed the network’s energy footprint to identify emissions hotspots and develop an effective mitigation strategy.
Polygon purchased tokenized credit worth $400,000 in the off-chain carbon market using KlimaDAO’s offset aggregator.
Additionally, Polygon partnered with KlimaDAO in order to retire carbon credits from certain projects that were built on the blockchain. Bull Run Forest Conservation Project (one of the projects) is one example.
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Furthermore, whale accumulation is the second factor that drives MATIC’s price increase, according to Santiment on-chain statistics.
According to their tweetOn June 22,
For the past six weeks, $MATIC whales and sharks have enjoyed a huge accumulation trend. This time period, the 8.7% increase in their overall bag contents has been achieved by holders holding tiers from 10k up to 10m coin.
Featured Image from Flickr. Chart by TradingView.com