Polygon stands as one of the most prominent L2 scaling solutions for the Ethereum blockchain. The network was built to address Ethereum’s high fees and slow transactions.
With updates like zkEVM (Zero-Knowledge Ethereum Virtual Machine), Polygon constantly maintains its inherent traits. Now, with the Elderberry upgrade scheduled for March 7, all eyes are on Polygon to revolutionize the L2 scene.
Potential Benefits of Elderberry:
Elderberry is the latest upgrade for Polygon zkEVM that will focus on ROM optimizations and how they impact the network.
ROM, or Runtime Object Model, acts as the interpreter for zkEVM. It serves as how the EVM interprets smart contracts on Ethereum. ROM understands and executes all opcodes and transactions in the zkEVM.
Optimizing the ROM means Elderberry can massively decrease out-of-counter errors. Such issues take place when the gas counter tracking the transaction costs malfunctions. Besides this, the upgrade will bring better network efficiency and scalability.
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Since the improvements will reduce development costs, Polygon will emerge as an appealing platform for developers. In addition, an improved UX will also attract customers with cheaper and quicker transactions.
Potential Price Impact:
Cryptocurrencies are inherently unpredictable assets that can fluctuate severely within hours. However, these assets also tend to bode well with network upgrades and market movement.
Polygon also has a rich history of price hikes after positive developments. The rising popularity of DeFi helped Polygon witness a quick price surge in 2021. Similarly, the network grew significantly after major project integrations with Curve and Aave during the same period.
Given the apparent connection, experts expect the Elderberry update to boost MATIC’s market price. According to the Polygon crypto price prediction, MATIC can end the year at $1.31. However, the upgrade will only be one factor among many that can affect Polygon’s price.
In Conclusion
The upcoming Elderberry upgrade, scheduled for March 7, is one of the biggest updates Polygon has deployed in a while. The upgrade aims to optimize ROM, decreasing out-of-counter errors and increasing efficiency and scalability.
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Historically, such upgrades have boosted Polygon’s market price through the roof, as seen in 2021. However, merely banking on the upgrade to push MATIC’s price is not wise. Cryptocurrencies are quite volatile and rely on several factors to affect their market performance.
Thus, traders should closely follow every Polygon update and conduct thorough research before making any investment decisions.
