Polygon recently announced a strategic focus based on ZK-based scaling solutions.  They also announced the merger and acquisition of Hermez Network.

Previously, Polygon identified that there is a pressing need to scale Ethereum and PoS chain. Since both Polygon and Ethereum are in a better place, more innovation is happening right now.

Polygon has been actively experimenting with major scaling technologies since 2017. To date, ZK crypto is ideal for building all the solutions that users want and deserve.

About $1B from the treasury is invested to fund this effort. These funds will be used to acquire world-class ZK projects and teams, building ZK-based solutions; Hiring premium talent, Adoption of ZK solutions; Research funding, etc.

Further, Hermez Team on the Polygon Network is building an EVM-compatible solution. Developers at  Polygon are aware of the importance of EVM compatibility. Since Hermez is already working on introducing scaling solutions using ZK projects, the current partnership makes sense.

For clarity, Hermez is the only decentralized rollup. Rollups are promising solutions; however, they are in early development with critical components where operators are fully centralized. Hermez is not compromising with its decentralized design.

This merger is the first of its kind where one blockchain network is merged onto another. Thus completely absorbing another, inclusive of technology, team, token, etc.

Polygon’s experience, adoption, and treasury with Hermez’s technology and knowledge are expected to bring great results.

They are set to continue investing, growing their team, and expanding their suite of solutions to become the leading force in the ZK field.

For clarity, Polygon Matic is envisioning an open and borderless world. Thus, creating a world where people and machines collaborate to exchange value globally and freely, avoiding gatekeepers or intermediaries. As a result, communities are beginning to thrive without feeling constrained by artificial borders and archaic regulations.  Users will thus feel empowered to join this new and better world effortlessly.

Polygon came into being by the work done by a decentralized team of contributors worldwide.  The Polygon team does not believe in traditional companies, hierarchy, and management.  Thus,  anyone can contribute code, ideas, or anything else which will help make this vision a reality for the world.

The price of MATIC recently closed with the best weekly performance since May 2021.  This has positioned the cryptocurrency near the critical $1.75 resistance.  There is a clear bearish momentum divergence visible in several intra-day timeframes.  There is a clear resistance at the 38.2% Fibonacci retracement at $1.48.