Considered as a second-tier solution for the Ethereum network, Polygon coin (MATIC) grows 12,000% per year and approaches the top 10 largest cryptocurrencies in the world.
Polygon (MATIC): The Second-Layer Solution for the Ethereum Network
Launched in 2017 as Rede Matic, Polygon is a tier 2 platform built on the Ethereum blockchain that is intended for the development of decentralized applications (DApps).
According to the official website, Polygon calls itself the “Ethereum blockchain”.
Ethereum (ETH) is the most used blockchain worldwide. As a decentralized and open source blockchain, ETH quickly gained popularity after its release in 2013, offering smart contract functionality in the form of PoS (Proof of Participation).
However, rapid adoption of Ethereum comes at a very high price, with high transaction fees that often triple the amount to be transferred. This is due to the large number of users on the ETH network, which significantly reduces transaction scalability.
Against this backdrop, Polygon (MATIC) claims to be the cross-chain scalability solution that provides a framework for building blockchain networks that can connect. Its goal is to bring the scalability and flexibility of alternative chains together with the liquidity, security and interoperability of Ethereum.
Unlike Ethereum, MATIC is not influenced by high transaction rates due to congestion. It is an open-source technology that gives developers the tools to instantly implement a standalone network or secure sidechain, leveraging the security of the Ethereum network through intelligent DeFi contracts.
MATIC ups and downs
At the beginning of 2021, Polygon coin was ranked 113th in the world’s largest cryptocurrencies, with a market value of around $96 million. Each unit of the digital asset, traded under the ticker MATIC, cost less than 2 cents.
In May, 5 months and 12,000% growth later, digital currency began to approach the top of the list. Polygon coin gained nearly 300% in the month, bringing the asset to its record price of $2.45. In addition, the market value of the project was now worth $13.4 billion.
At the end of the month, the cryptocurrency market saw the biggest sales flow in its history, causing a crash in most digital assets. With Polygon coin it was no different: the price of the coin plummeted to a third of its value. However, the asset was one of the fastest showing signs of recovery and it shows strong signs of trading near its maximum soon.
With support from Mark Cuban, Polygon coin rises more than 30%
One of the reasons for Polygon coin’s quick recovery amidst the crash of most digital assets in May was the announcement of the project’s adoption by one of the largest investors in the United States, Mark Cuban. The disclosure was made on May 25 through Polygon’s official Twitter profile.
According to the publication, Mark Cuban is one of the most prolific and insightful investors with investments in major startups, as well as being one of the ‘sharks’ on ABC’s Shark Tank program. Polygon also said it is proud to announce that it is part of the Mark Cuban Companies portfolio.
🔥 @mcuban is one of the most prolific and insightful investors with investments in top startups and he is also one of the Sharks on @ABCSharkTank.
🙌🏻 We’re proud to share that @0xPolygon is now part of the Mark Cuban company portfolio!
🌐 Visit: https://t.co/RZg0oIomFS
— Polygon (@0xPolygon) May 25, 2021
The publication also pointed to the investor’s website, who is also the owner of the NBA’s Dallas Mavericks and a Dogecoin enthusiast. A few hours after the announcement, the cryptocurrency rose more than 30%.
Mark Cuban Companies praises Polygon’s structure and cryptocurrency aproach CoinMarketCap’s to 10 list
On the official website of Mark Cuban Companies, the company says that Polygon is the “first well-structured and easy-to-use platform that solves the scalability and infrastructure issues of the Ethereum network”. The statement also says that the network already has more than 250 DApps, 122 million transactions performed and nearly 1 million users.
With the project’s accelerated adoption, those who invested $100 in the cryptocurrency on the first day of 2021 now have more than $12,000 in their account – which, of course, doesn’t mean that the cryptocurrency will necessarily continue to grow and yield exorbitant profits.
With a market value of more than 13.4 billion dollars, the project is close to the top 10 on the list, according to the website Coin Market Cap. The 10th place is the Internet Computer project, with 17 billion dollars in market cap. Ranking leader, Bitcoin currently has 752 billion dollars, followed by Ethereum, with 331 billion.
Polygon coin (MATIC) price
Polygon coin is currently priced at $0.908 and its market capitalization is $8.992 billion. The cryptocurrency holds about 0.43% of the crypto market, with about 6.38 billion MATIC tokens in circulation.
Should I invest in Polygon coin?
Crypto experts say that in mid-May, the Polygon community had around 75,000 new users and that number kept growing. This growth, in turn, demonstrates a clear sign of the digital token’s popularity among its users, something that can be beneficial in the long run.
According to them, network congestion can be a major disadvantage for Layer 1 networks. As Polygon is a Layer 2 network, it demonstrates its advantages in the DeFi world, where mining companies do not pay high transaction fees. MATIC token users can avoid the high fees due to congestion and enjoy the benefits of popular blockchains such as existing code infrastructure, well-founded developer base, and more.
In addition, the overvaluation of the digital currency at the beginning of the year serves as a positive argument for the forecast of a rise in the cryptographic price of the MATIC token.
According to CoinPedia’s MATIC price forecast, the currency “has a strong tendency to destroy the highest levels above $3”. While a pullback from recent highs seems plausible in the near term, they expect the MATIC to reach new highs, triggered by increased investor attention, and rise to $10 by the end of 2021.
However, crypto experts caution that, like other cryptocurrencies, Polygon coin is also part of the highly volatile crypto market and its growing popularity is unlikely to influence investor decisions. If a cryptography sponsor wants to invest in Polygon (MATIC), he or she should closely examine projects that leverage its smart contract capabilities for the Polygon network as well as its growth in market share.
