Ethereum and ZK Rollups may make Polygon one of hottest cryptocurrencies of 2023

One of the networks in the cryptocurrency industry in 2022 that collaborated most frequently with significant businesses, like Starbucks, Disney, and Nubank, was Polygon (MATIC). Even during a downturn market, these features helped the altcoin ecosystem to expand, and more causes may place the cryptocurrency among the year’s biggest stories in 2023.

ethereum-and-zk-rollups-may-make-polygon-one-of-hottest-cryptocurrencies-of-2023

MATIC/USD 4-hour chart | Source: TradingView

Can Polygon Skyrocket in 2023?

With its entry into the blockchain community, Polygon aimed to provide scalability for Ethereum (ETH) transactions. With it, investors can fulfill their objectives of paying low transfer fees while still enjoying the security of the most popular altcoin on the market. This year, Polygon cemented its leading Layer 2 network position. This does not preclude the development and enhancement of its solutions in 2023, though.

The performance of MATIC, Polygon’s token, could be even better in the upcoming year due to the increasing demand for resources that provide scalability for smart contracts.

The Surge, yet another significant update to the ETH network, is anticipated for 2023. The smart contract platform will be able to scale with the aid of this improvement without losing its decentralized nature. Scalability will result from the fact that Ethereum validators won’t have to keep the complete cryptocurrency database on hand. Storage fees will go down as a result.

The growth of blockchain initiatives centered on the Merge, the update that added proof of stake (PoS) to ETH, became apparent this year. The capitalization expansion of Lido DAO (LDO), which saw a 300% spike between July and September 2022, is a nice illustration of this. If the scenario is repeated, Layer 2 assets, such as Polygon, may experience significant growth, and MATIC may take the lead in this market. After all, blockchain investors have already come to trust its network.

ZK Rollups is another sector that is expanding, albeit slowly. For those unfamiliar with the phrase, ZK Rollups is a Layer 2 blockchain system that holds assets in an on-chain smart contract while processing transactions, running computations, and storing data off-chain.

By proving facts without disclosing information unrelated to a transaction, this idea helps protect the security and privacy of persons taking part in bitcoin transfers. Polygon stands out in this space with its zero-knowledge proofs that combine several off-chain transactions into a single on-chain transfer. ZK’s cryptocurrency lowers validation proof generation’s computing expense as well.

This demonstrates how the Polygon team is dedicated to developing answers for a range of difficulties, distinguishing itself for its capacity to address actual concerns and avoid inventing solutions out of thin air. This is unquestionably another benefit for MATIC’s price in 2023.

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