OKX, a leading digital asset exchange, has made a significant move in the cryptocurrency sector by utilizing Polygon’s Chain Development Kit (CDK) to introduce its ZK-powered Layer 2 network, X1 (@X1_Network).
The announcement on Monday revealed that X1 seeks to connect the substantial user base of more than 50 million OKX customers with the wider Ethereum ecosystem. This strategic initiative aims to improve liquidity access across different CDK chains and leverage the robust security infrastructure of Ethereum.
OKX’s X1 Boosts MATIC, But Caution Prevails
The launch of X1 by OKX has had an immediate impact on the market, notably benefiting MATIC, Polygon’s native token. MATIC experienced a significant daily rise of 2.86% and a weekly surge of 27%, reflecting positive sentiments around the improved connectivity and scalability promised by X1 for the Ethereum network.
However, despite this growth, crypto intelligence tracker Santiment suggests caution. The Network Realized Profit/Loss (NPL) indicator and the 30-day Market Value to Realized Value (MVRV) metric for MATIC indicate potential profit-taking behavior and spikes in the network-level return on investment, hinting at a possible bearish trend.
The introduction of OKX’s X1 network is a noteworthy step in connecting traditional cryptocurrency exchanges with decentralized finance (DeFi) platforms. OKX’s use of Polygon’s advanced technology positions it as a leader in Layer 2 scaling solutions, crucial for enhancing transaction speeds and reducing costs on the Ethereum network. This expansion in accessibility is expected to solidify Ethereum’s role as a key ecosystem in the blockchain space.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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