Ethereum’s Merge date is days away and the countdown has many individuals questioning in regards to the destiny of layer-2 scaling options.

You might have seen Ethereum-associated cryptocurrencies and tokens similar to MATIC are up considerably in the previous couple of weeks.

Nonetheless, the transfer to proof of stake will remedy a number of the scalability points related to Ethereum, thus the curiosity about the way forward for L2s.

Polygon is without doubt one of the layer-2 options whose future could be at stake because of the Merge.

Nonetheless, that may probably not be the case.

Right here’s why

Though considered one of Polygon’s advantages is the speedy transaction rely which is miles forward of the Ethereum mainnet. Even so, Polygon additionally gives considerably decrease charges.

Congestion and excessive ETH costs are the primary causes for costly mainnet charges.

ETH’s value has gone up forward of the Merge and can possible proceed rallying. This implies the transition to the PoS (Proof of Stake) consensus mechanism will do little to decrease gasoline charges.

Polygon and different layer-2 options will proceed working to supply decrease charges, therefore MATIC will nonetheless be in demand.

However, there may be extra to Polygon than meets the attention.

Partnerships with main enterprises similar to Disney and Mercedes Benz are simply the tip of the proverbial iceberg.

Polygon plans to change into the bridge for the switch of liquidity from conventional finance to crypto.

These developments would possibly set off an exponential improve within the demand for MATIC. Thus, aiding its long-term value motion.

MATIC’s value motion

MATIC was up by 163% at press time on 4 August, from its backside in June. It has been ascending inside a help and resistance vary, which is presently approaching the help line.

Supply: TradingView

MATIC’s value motion was headed upwards in direction of the top of final week.

Nonetheless, its value motion noticed a major pullback which kicked off on the finish of July.

That is in keeping with sudden and heavy outflows from the availability held by prime addresses.

Supply: Santiment

These outflows had been arguably on account of panic promoting courtesy of the promoting stress within the final three days and due to MATIC’s vesting schedule.

There was additionally a pointy spike in MATIC’s energetic addresses within the final 24 hours of 4 August.

That is possible because of the return of traders who beforehand cashed out in anticipation of the promote stress from the vesting schedule.

Buyers at the moment are shopping for in decrease, now that the vesting has already taken place.

Even the highest addresses have elevated their balances within the final two days.

Supply: Santiment

The short re-accumulation simply days later means that traders anticipate MATIC to proceed rallying forward of the merge.

Though MATIC presently seems bullish, traders ought to contemplate future vesting schedules which can suppress the value as extra tokens are launched into the market.

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