MATIC, the native token of Polygon, the Ethereum expansion solution, rose by 12% earlier today (27th), continuing its strong momentum this year.

At press time, MATIC was trading at $1.10, up 48% since December 31. The rally comes amid an upturn in cryptocurrency markets in January, with Aptos’ APT token surging more than 400%, Fantom’s FTM up about 145% and Bitcoin rising nearly 40%.

According to data from Token Terminal, trading activities on Polygon have heated up rapidly recently, with daily active users (DAU) reaching 344,500, surpassing Ethereum to become the second largest blockchain in terms of active users, second only to BNB Chain.

Source: Token Terminal

Polygon’s zkEVM mainnet is expected to be released early this year, which will allow developers to easily move smart contracts from Ethereum to the Polygon environment, which is likely to be a positive factor driving MATIC’s price.

Charles Storry, head of growth at cryptocurrency index platform Phuture, said, "There are still many projects built on Polygon that have not yet released tokens. Once these tokens are launched, it is expected to further drive Polygon's on-chain activity."

Polygon currently has a total value locked (TVL) of approximately $1.1 billion, according to DeFi Llama, with Charles Storry adding:

We are seeing significant increases in TVL for riskier projects and early stage applications. During the bear market, investors were more conservative and didn't want to take huge risks, but now that prices have recovered, they are more open to Polygon's newer, riskier ecosystem. As the market continues to recover, we will see more events like this happening.

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