Polygon 2.0 is crypto’s ‘most relevant technical announcement’: FalconX

Polygon is making up for poor year-to-date performance with a July rally, as markets appreciate its upcoming network upgrade


Dennis Diatel/Shutterstock modified by Blockworks


Polygon (MATIC) is mounting a comeback this month following a poor showing throughout most of the year.

The native token for the popular Ethereum scaling network was up 12% in July as of Tuesday afternoon. Bitcoin (BTC) was about flat and ether (ETH) had dropped 3.2% 

Cryptocurrencies tied to layer-2 solutions Arbitrum (ARB) and Optimism (OP) had respectively sunk 3.5% and 8.9% over the same period.

MATIC’s comparatively strong performance could stem from speculation about a major network update, Polygon 2.0, according to a FalconX research note.

“The Polygon upgrade is the most relevant technical announcement in the industry at the moment,” David Lawant, the firm’s head of research, said. 

“We expect MATIC to keep closing its gap versus peers as more details of the upgrade roadmap become more apparent to the market.”

MATIC has enjoyed a healthy July

The update is labeled a “vision for unlimited scalability and unified liquidity, powered by Zero-Knowledge technology,” per the project’s roadmap.

Polygon Labs, the primary studio behind Polygon, collaborated with developers, researchers, node operators, validators and other stakeholders as part of its process.

Polygon 2.0 is expected in a number of phases with the first geared towards establishing what’s dubbed a “value layer,” mirroring how the “rest of the internet operates.”

Architectural overhauls, including a validium, are intended to reduce costs and boost transaction throughput. There’s also plans to revamp tokenomics and governance processes, FalconX noted.

Zooming out, though, and MATIC still has a ways to catch up.

Despite outperforming most of the market directly following the FTX scandal last November, MATIC is down 3.2% over the year to date, underperforming against BTC, ETH, ARB and solana (SOL), all of which are up more than a third.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Cover Vertex.jpg


The proliferation of new perp DEXs has led to fragmented liquidity across various DEXs and chains. Vertex, known for its vertically-integrated DEX that includes spot, perpetual, and integrated money markets, is now tackling cross-chain liquidity fragmentation through horizontal integration with the launch of new Edge instances. Vertex's integrated offerings and cross-margined account structure amplify the benefits of new instances: native cross-chain spot trading, optimized cross-chain basis trading, consistent interest rates, reduced bridging friction, and more.


Plus, a dive into crypto’s ever-expanding unicorn club


Also, tokenization continues to grab headlines and one bitcoin miner stock soars Tuesday after inking a big deal


Fifteen million daily failed transactions disappeared from Solana


FTX debtors will pay the IRS $200M, with an outstanding lower priority claim of $685M


I’ve come to the realization that more attention is needed to create and sculpt the digital spaces where we live


The NYSE went down yesterday after a glitch caused a string of erroneous trades. Does DeFi fix this?