Polygon’s (CCC:MATIC-USD) MATIC coin hasn’t had a terribly interesting week. It fell below its seven-day average right at the beginning of the week and has spent the last few days largely trading sideways. However, today marks a stark contrast to that trend as MATIC sees some impressive gains. It seems the Polygon crypto is being bolstered by rumors of a coming partnership on a hyped-up non-fungible token (NFT) platform.
The Polygon network is well-known for its scalability. It utilizes layer-2 scaling in order to keep transactions from getting bottle-necked on a network’s primary chain. By breaking a network up into a series of chains, it creates what it calls the “Internet of Blockchains.”
Coinbase (NASDAQ:COIN) is one of the largest partners of the Polygon network; the two have forged an agreement to make Polygon the official layer-2 solution of the exchange platform. Now, it looks like Polygon will be taking on a bigger role with Coinbase’s newest project.
Polygon Crypto Sees Boost in Value With Rumors of Coinbase NFT Partnership
Coinbase is planning on releasing its own NFT platform in the near future; those on its long waitlist are expected to start receiving access to the platform later this year. Through Coinbase NFTs, users will be able to mint, buy, sell and display their NFTs in one place. Of course, given the Coinbase exchange’s size, it’s not out of the question to expect the NFT platform to see huge volumes of transactions each day.
This is why rumors are beginning to float about Polygon’s layer-2 scaling underlying the coming NFT platform. Tweets wagering that Coinbase taps Polygon for this structuring cite the existing partnership between the two as evidence. Given Polygon’s skill at solving scalability issues without having to ramp up transaction fees, the partnership seems to many to be a no-brainer.
Not to mention, Polygon is not resting on its laurels with its existing capabilities; the network is seeking out new ways to improve its efficiency further. In fact, developers are hosting a fireside chat tonight where they will introduce a new squadron who will research ways to up efficiency of payment scaling.
That’s exactly why investors are heeding these rumors and piling into the Polygon crypto, MATIC, today. Transaction volume of MATIC is up sixfold across the exchanges that list it, and the influx of buyers is doing well to push prices up over 18% on today’s trading session.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.