Polygon makes major announcements; here is what you need to know  

• Polygon partners with Eclipse to launch its new Sealevel Virtual Machine.
• A new upgrade for Polygon zkEVM will be released with added integrations.

Polygon [MATIC] recently made a major announcement that will likely increase the network’s capabilities and offerings. The blockchain has partnered with Eclipse to launch a new software that will allow Solana apps to migrate to Polygon or go multichain. 

But the question is- Why should an investor care about this partnership?

Well, to answer that we need to know SVM first. The software named Polygon Sealevel Virtual Machine (SVM) is a customized rollup to bring Solana’s Sealevel Virtual Machine to the Polygon ecosystem.

Polygon SVM will increase throughput and enhance interoperability for crypto-related businesses, including gaming, DeFi, and more.

Any project developed on Solana will be able to smoothly leverage the capabilities of Polygon’s scaling solution using the newly announced SVM. As per Polygon, the testnet for Polygon SVM is expected to go live during the first quarter of 2023. 

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New update for Polygon’s zkEVM

Not only SVM but there was interesting news for Polygon’s much-awaited zkEVM as well. Reportedly, there will be an audit-upgraded testnet for zkEVM.

This release will be a part of the security audit program that was announced back in December 2022. As per the official announcement, the new testnet will come with performance improvements as well as support for Etherscan and FFLONK.

Etherscan is one of the most popular block explorers for searching and browsing verified Ethereum blocks and transactions. With the integration of FFLONK, there will be significantly improved verifier performance.  

Realistic or not, here’s MATIC market cap in BTC’s terms

What was MATIC’s response like?

These updates did not have an impact on MATIC’s chart, which was painted red, thanks to the bearish market trend.

According to CoinMarketCap, MATIC’s price registered a decline of more than 6% in the last 24 hours, and at press time, it was trading at $1.27 with a market capitalization of over $11 billion.

The same remained true with MATIC’s on-chain performance, as most of the metrics looked bearish.

For instance, MATIC’s MVRV Ratio registered a downtick lately.

Meanwhile, CryptoQuant’s data revealed that the net deposits on exchanges were high compared to the 7-day average, which is a negative signal as it indicates high selling pressure.

In addition to that, MATIC’s active addresses also decreased. Thus, suggesting fewer users were participating in the network.

Source: Santiment

Nonetheless, a few of the metrics were working in MATIC’s favor. The network growth remained consistently high throughout the last week.

MATIC’s popularity also increased, as was evident from the spike in its social volume. Its exchange reserve was also declining, which was a bullish signal.

Interestingly, MATIC has remained popular among whales, as it recently became one of the top 2000 Ethereum whales’ most used smart contracts.

Therefore, despite the current negative price action, the possibility of a trend reversal can’t be ruled out considering whales’ interest and the aforementioned updates.