According to CoinMarketCap, the value of Polygon (MATIC) increased by almost 27% to $0.55 within 24 hours of news that Polygon was carbon neutral. However, the coin is still on an upward trend, and at the time of writing, it was trading at $0.60.
The price is still down from the beginning of the month when it was trading at $0.66, but MATIC’s price gains are sending a positive pullback considering the market bearish. It ranks as the 18th largest cryptocurrency worldwide.
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According to CoinMarketCap data, the value of Polygon (MATIC) has increased by almost 50%% within seven days. On the other hand, major cryptocurrencies such as bitcoin and ethereum saw a one-week decline. Furthermore, Polygon is down nearly 80% since peaking at $2.92 on December 27, 2021. However, it is still up 50% from this month’s low of 0.31 on June 18.
MATIC was previously built on top of the Ethereum network and is now enhanced with a Plasma-based side-chain to guarantee asset security. The main objective of MATIC Network, which calls itself a blockchain-agnostic layer-2 scaling solution, is to enable scalable, instant and secure blockchain transactions.
Main factor driving the Matic value of a polygon upwards
The reason for the increasing value of polygons appears to be mainly two catalysts. Still, the most significant is a recent announcement that it has retired $400,000 worth of carbon credits, making the company carbon neutral.
The achievement of carbon neutrality has resulted in a substantial increase in the value of its native token. The trade desk of Indian crypto exchange WazirX also claims that:
Polygon (MATIC), has recently achieved carbon neutrality (a consistency between emissions and absorption of carbon). This has led to an increase of 30% in MATIC price over the past few days. An hourly pattern for MATIC has been damaged by a rising triangle pattern. The latter resistance is predicted at $0.73°.
Polygon said in its blog post that through their partnership with ClimaDao, it has become carbon neutral, adding that:
To help implement the first phase of Polygon’s long-term commitment to sustainability, Climadao, in partnership with Offsetra, analyzed the network’s energy footprint to identify emissions hotspots and develop an effective mitigation strategy.
Then, using KlimaDAO’s offset aggregator feature, Polygon purchased $400,000 worth of token credits from the on-chain carbon market.
In addition, Polygon collaborated with ClimaDao to eliminate carbon credits created by special projects on its blockchain. The Bull Run Forest Conservation Project is one of those projects.
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Furthermore, according to sentiment on-chain data, whale accumulation is the second factor driving the price of MATIC.
as stated in their Tweet On June 22:
$MATIC Sharks and whales have been in a very large accumulation trend for about six weeks. The tiers of holders of 10k to 10m coins have collectively added 8.7% more to their bags over this time period.
Featured image from Flickr and chart from TradingView.com