Polygon’s native token MATIC’s price is currently in a downward trend. This is despite the fact that Polygon Network has become the first Proof-of-Stake chain to activate a Rollup Improvement Proposal (RIP) — RIP-7212.
Data from Alchemy shows that RIP-7212 could reduce gas cost for rollups.
Also read: Polygon powers restaking protocol developing L2 chain, plugs into MATIC’s AggLayer
Polygon Network, the largest Ethereum scaling solution, completed its Napoli hard fork upgrade on Thursday. The Proof-of-Stake blockchain became the first one to activate an RIP. RIP-7212 brings support for transaction cost reduction for rollups.
In its official announcement, Polygon attributed RIP-7212’s implementation to the RollCall Working Group that helps Layer 2 chains extend to the Ethereum Virtual Machine (EVM) with an open standards process similar to the base layer Ether.
Polygon Community Contributors have proposed adding support for 2 other RIP/EIP track changes in the next hard fork of PoS, EIP-3074 enhancing account abstraction options for developers on PoS, as well as PIP-30 which increases the EIP-170 Max Code Size Limit. Join the discussion…
— Polygon | Aggregated (@0xPolygon) March 20, 2024
The Polygon Community has proposed adding support for two other RIP/ Ethereum Improvement Proposals for the next hard fork of the MATIC blockchain.
According to Web3 development platform Alchemy,
With RIP-7212 verifying P256 only costs 3450 gas, a 100x reduction from the best non-protocol change option. RIP-7212 is the most gas-efficient, secure, and fastest way to verify the P256 on EVM chains.
MATIC price is currently in a downtrend. The native token of Ethereum’s scaling chain is down 22% from its YTD peak of $1.29 on March 13. MATIC price could plummet lower, finding support at $0.8326 (23.6% Fibonacci retracement level) and in the bullish Fair Value Gap (FVG) between $0.7395 and $0.7553.
The Moving Average Convergence/ Divergence indicator supports a bearish thesis for MATIC, as its red bars line up below the zero line, signaling negative momentum in the scaling token.
MATIC/USDT 1-day chart
In the upside scenario, a daily candlestick close above $0.9907 (the 50% Fibonacci retracement level) could invalidate the bearish thesis for MATIC. MATIC price could find support at the lower boundary of the FVG, $0.7395, and the monthly support level at $0.4727.