Polygon (CCC:MATIC-USD) is a familiar name to most crypto investors. The network has carved out a name for itself after last year’s boom in active blockchain users. While many layer-1 networks like Ethereum (CCC:ETH-USD) struggled to keep up with transaction demand, Polygon’s layer-2 solution made it a no-brainer among those looking to avoid high gas fees. Now, its hard work is paying off in 2022 as the network finds $450 million falling in its lap through a recent fundraise. The Polygon (MATIC) crypto news is in turn leading to some big gains for investors.
The Polygon network has been plugging along recently with acquisitions and new updates that strengthen its position as a scaling play. One of its most notable recent developments is its Plonky2 zk-scaling rollout; as a result of the release, users can now tap zero knowledge (zk) proofing technology to transact on Polygon. This, of course, wouldn’t be possible had it not been for the blockbuster acquisition of Mir Protocol by the network.
More recently, MATIC is benefitting from an update that brings token burning to the platform. With Ethereum’s recent Improvement Proposal going live on Polygon, MATIC tokens will slowly be burned. With a fixed supply of 10 billion tokens, the upgrade will do much to influence the supply and demand economics of the token.
Polygon (MATIC) Crypto Soars From $450M Fundraise
Today, a new kind of catalyst is giving the Polygon (MATIC) crypto a boost. A new fundraise, led by Sequoia Capital, is injecting a lot of money into the layer-2 project.
When it comes to venture capital firms, Web 3.0 technology is one of the hottest investments of the moment. These firms are looking for the best projects for the next era of the internet, and Polygon is seen as a leader. This much is evidenced by the impressive fundraise it just held.
The network is raising over $450 million in its recent private token sale. Led by Sequoia, the fundraise also saw participation from the likes of Softbank (OTCMKTS:SFTBY), Galaxy Digital and an investment by blockchain bull Kevin O’Leary.
Polygon says it plans to use the money to fund its many scaling ventures. This includes bulking up the zero knowledge proofing technology it recently released; the network made a $1 billion commitment to funding zk proofing amid its acquisition of Mir. It also includes developing new scaling technologies that it doesn’t yet offer.
As investors digest the news, MATIC is on the rise. The token is up nearly 16% today; it is also seeing a trading volume of over $1.5 billion, a 140% rise over yesterday’s volume.
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.