Polygon plans to start its business, especially now that the Ethereum merger is complete. Polygon’s recent announcement reveals an ambitious goal that, if successful, will cement its position as the most powerful Ethereum L2 solution.
Polygon revealed in a recent blog post that it is testing different block sizes through its Avail Test Network. It plans to increase its network performance about 50 times over its current capacity. It aims to achieve this by increasing the block size from 2MB to 128MB.
Part 2 of the Avail Scaling series titled “2MB to 128MB Blocks” and addresses why @0xPolygonAvail It can be up to 50 times its current performance.
Learn how standard blockchains work and why they are more easily scaled than other chains.
– Polygon – Matic 💜 (@0xPolygon) September 14, 2022
This massive increase in transaction speeds will allow Polygon to secure the number one position as the fastest Ethereum layer 2 solution. Polygon also mentioned that the block designs will facilitate lower network fees despite the increased block size.
“Avail’s design fosters continued growth in transaction throughput (and reasonable transaction costs), even in a fully decentralized system.”
A mirror on the wall for MATIC?
The combination of faster transactions and lower transaction fees will be refreshing for users. Especially now that Ethereum has switched to PoS where strong growth is expected.
MATIC is still sharply below its all-time high (ATH) despite the recovery over the past three months. It has shown some weakness in prices over the past three days, causing it to slide below the high support line.
MATIC bears encountered friction at $0.85 after the price surged to the 50% RSI level. This means that there is an increased possibility of a bullish reversal.
Reversal expectations are further supported by net exchange rate outflows. The MATIC measure of change in net exchange position changes decreased from -15,879,037 MATIC to -21,675,900 MATIC between September 11 and 14.
The observation confirms that MATIC is flowing from the exchanges and this is a sign of bulls support. MATIC’s velocity has also shifted from bearish to bullish, reflecting the observed exchange outflows.
Polygon’s scaling plans are emphasizing a wave of potential value ahead of MATIC. While this may help secure long-term value, its short-term performance is still poor, but that may be about to change.