Polygon Crypto Bringing the World to Web3
Polygon Crypto continues to play an integral role in the stimulation of mass adoption of digital assets by using its innovative technology to resolve scalability problems on many blockchains.
Polygon Crypto, as a layer-2 scaling solution protocol, was designed to simplify the usage of decentralised applications (dAPPs) on Ethereum and other applications from financial technology (FinTech) corporations.
As an alternative platform, Polygon Crypto facilitates 100% free, secure, and instant transactions. By solving the blockchain trilemma (scalability, security, and decentralisation), it is no surprise to see thousands of developers attracted to Polygon as the protocol meets all the essential components of the Web3 revolution.
Web3 has the primary aim of envisioning an internet that lessens the authority of big technology companies like Google and Facebook. Those companies that require us to hand them our personal information before we can use their respective products.
Web3 would be powered by artificial intelligence and blockchain technology. Cryptocurrency transactions are published on a public ledger that anyone with an internet connection can access. Web3 aims to lead the web on the same path so that activities online will be highly decentralised.
Since Ethereum has the first-mover advantage in creating smart contracts, Polygon crypto's innovation will help bring millions of users (developers, traders, stakers, decentralised finance fans, NFT lovers, and blockchain enthusiasts) to the world of Ethereum.
Aside from having the most total value locked (TVL) in the decentralized finance (DeFi) space, Ethereum remains the blockchain with the highest NFT sales in 2022. The four highest-selling NFT projects of all time - Axie Infinity (AXS), CryptoPunks, Bored Ape Yacht Club (BAYC), and Mutant Ape Yacht Club (MAYC) - are all housed in the ecosystem of Ethereum.
How Would Polygon Crypto Bring the World to Ethereum?
On December 17, 2021, there were some 3,734 blockchain apps, according to the State of the DApps. This number has increased substantially since new projects are added daily to the crypto finance space.
Per the data retrieved from DappRadar, as of May 2, 2022, there were more than 3,000 dApps on Ethereum. A substantial number of these dApps have been deployed on Polygon.
Since interoperability was once a problem among blockchains and their related applications, Polygon turns Ethereum into a blockchain internet as well as a multi-chain system that connects one decentralised application with the other. Some of the dApps originally built on Ethereum that have migrated to Polygon include Ox Protocol, SushiSwap,
KyberSwap, deBridge, Connext, 1inch Network, Wormhole, CelerNetwork, Beefy Finance, DODO, Bungee, Aave, TransitSwap, Synapse, Curve, Uniswap, and Balancer, among others.
The sole reason for the migration from Ethereum to Polygon is to improve scalability, which leads to low transaction fees. Polygon does this without compromising security since it is one of the attributes that makes blockchain technology highly efficient.
How does Polygon Improve Decentralised Applications on Ethereum?
Through Polygon crypto’s complete suite of Ethereum-scaling solutions in the form of Polygon Proof-of-Stake (PoS), Polygon Hermez, Polygon Avail, Polygon Edge, Polygon Nightfall, Polygon Miden, and Polygon Zero, the performance of Ethereum dApps are highly improved.
Polygon PoS is an Ethereum Virtual Machine (EVM) – a compatible Ethereum sidechain secured by a set of PoS validators in a permissionless manner.
Polygon Hermez is an open-source zero-knowledge (ZK) rollup that is highly optimized for low-cost, usable, and secure token transfers on Ethereum. To put it simply, zero-knowledge-rollups combine a substantial number of layer2 transactions executed off-chain and submit them as a single transaction onto the blockchain of Ethereum.
Polygon Avail can be highly beneficial to Ethereum developers searching for off-chain scaling solutions.
Polygon Edge has an extensive and modular framework that plays an invaluable role in building public and private blockchain networks that are compatible with Ethereum. Polygon Nightfall is similar to Polygon Hermez as it also employs zero-knowledge cryptography (zk-rollup) in addition to optimistic rollups. With this combination, the Nightfall provides a unique scaling solution.
Polygon Miden provides support for arbitrary smart contracts through its STARK-based zk-rollup.
Lastly, Polygon Zero employs an Ethereum-compatible zero-knowledge rollup that is highly scalable.
As an Ethereum-friendly solution, Polygon will bring more people to Ethereum because developers do not need to have protocol-level knowledge.
Therefore anyone who has an idea of how to improve the current financial systems which will make the underbanked and unbanked financially inclusive can develop an application. What’s more, there are no permission, fees, or token deposit requirements. Anyone is welcome to build highly scalable applications using the Polygon suite of scaling solutions. Polygon crypto, like several projects in the stratosphere, was launched with a governance token which can also be used as a utility coin.
This is the native asset of the Polygon network that oversees all transactions in the ecosystem. Called MATIC, it plays an invaluable role in helping holders contribute to decisions and adds value to the Polygon crypto market.
With Polygon crypto's impact on Ethereum and Web3, will MATIC rise to new milestones in the future?
Is Polygon Crypto (MATIC) a Good Investment?
Should you consider adding digital asset MATIC to your portfolio of investments? Its issuing authority, Polygon, helps more than 19,000 applications scale their performance. This is in line with Polygon’s commitment to fostering the growth of Web3 applications through the provision of the needed infrastructure.
You should also note that lower gas fees (transaction fees on Ethereum) and faster transactions are the reasons hundreds of Web3 projects initially housed on the Ethereum network are migrating to Polygon.
Aside from the dApps earlier mentioned, NFT marketplace OpenSea and Dolce and Gabbana use the possibilities of Polygon to improve their networks. Some reasons why you should consider buying Polygon crypto…
Polygon (MATIC) is Highly Undervalued
One of the questions we continue to see on search engines is 'can MATIC reach $100?'. MATIC could exchange hands for $100 in the future if traders and investors understand Polygon crypto's purpose and impact on the market.
MATIC became a tradable token in April 2019. On April 28, 2019, MATIC opened with a trading price of $0.004521. The native asset of the Polygon ecosystem traded for a coin at $0.01381 on the last day of 2019.
At the peak of the coronavirus pandemic, there was a plunge in the prices of cryptocurrencies. As a result, MATIC was impacted negatively; it closed the first quarter of 2020 on March 31 with a trading price of $0.01078.
After institutional investors started taking a stake in digital assets in the crypto finance market, the price of polygon MATIC crypto made gains. The coin closed at $0.02036 on June 30 and ended the year with a price of $0.01763.
Billed as the best year for cryptocurrencies, 2021 saw MATIC reach one milestone after the other. Polygon cryptocurrency opened the year at $0.1763 and increased by 1,941% to close out the first quarter of 2021 at $0.3599.
After Elon Musk announced support for bitcoin (BTC) as a payment method for Tesla products in April 2021, there was a spike in the price of digital assets. MATIC was impacted positively and this led to a new all-time high price of $2.68 in May. In the month's second week, bearishness took over the market, leading to a decline in the new high to $1.17 to close out June 30.
After the markets recovered in November, MATIC saw huge investor interest which took its price close to $3.
As of May 2022, MATIC continued to trade below its all-time high price of $2.92 recorded in December 2021. At time of writing, MATIC was trading far below $3 and had more than $8 billion as market capitalisation.
This categorizes Polygon crypto as a medium-cap digital asset. A project such as Polygon should command a relatively higher price.
More than 78% of MATIC are in circulation, with only 22% left untapped. In the future, should scarcity take hold of MATIC, there could be a substantial rise in the price of the cryptocurrency.
MATIC appears highly undervalued, putting it on the radar of investors who want to transform their portfolios.
Polygon Crypto has a High Security Score from CERTIK
Assessing the security of the project is essential before you decide to invest in MATIC polygon crypto.
As the leading security-focused ranking platform that monitors and analyses decentralised finance projects and blockchain protocols, CERTIK is the most trusted security firm for crypto auditing.
After thoroughly analysing the Polygon crypto, CERTIK gave the project a high security score.
Polygon crypto had a score of 85 for static analysis (vulnerability and security checks).
The project had a score of 88 for on-chain monitoring, 91 for social sentiment, 92 for governance and autonomy, and 82 for safety assessment. Overall, CERTIK gave Polygon crypto a security score of 98 based on market volatility.
Cryptocurrencies are highly volatile. Being positively associated with indicators such as depth, liquidity, and volume bodes well for the entire Polygon ecosystem. This makes Polygon (MATIC) a sound like a safe investment.
Polygon Crypto is Highly Accessible
You do not want a situation where you are interested in a cryptocurrency that is not easily found online. As of May 2022, there are around 86 cryptocurrency exchanges (centralised and decentralised) that support MATIC trading.
Some of the exchanges include Binance, OKX, Coinbase Pro, DigiFinex, Huobi Global, FTX, eToro, Uniswap V3, and Crypto.com.
These are the biggest exchanges in terms of the daily trading volume. Investing in MATIC means that you are part of millions of people who believe in the potential of Polygon cryptocurrency in the short, medium, and long term.
Since MATIC is highly accessible, it explains the billions of dollars in volume poured into the token daily.
MATIC Has Positive Reserve Risk
Reserve risk analysis ends with two essential factors; is it an attractive or unattractive investment.
A digital asset can be an attractive investment if investor confidence remains high despite the low trading price of that particular asset. On the other hand, if investor confidence remains low while the price of a particular asset remains high, such an asset becomes an unattractive investment. We can infer from the two factors that MATIC is an attractive investment.
Since January 1, 2022, the lowest trading volume recorded for Polygon cryptocurrency was $300 million. The rest of the days have seen more than $800 million. This means that holders of MATIC believe the coin could have a higher trading price than what it is currently trading for.
They have an eye on the long term and can be said to be HODLing MATIC for future gains.
Should You Buy Polygon Crypto MATIC?
You should be aware of the risk factors involved in buying Polygon crypto as well as the potential rewards.
MATIC continues to remain inconsistent with its price performance. So far, MATIC has been impacted positively by the migration of Ethereum dApps to its scaling platform.
Most of the applications originally built on Polygon do not have the mileage of the dApps on Ethereum and other blockchain networks. As a result, they do little to impact Matic's price.
With that said, you can buy a substantial number of MATIC with a smaller capital.
Polygon continues to form partnerships outside Ethereum. Institutional investors such as Grayscale created a Trust for MATIC which has increased the popularity and credibility of the project.
MATIC has brought gains to several investors. Who knows, MATIC could be the cryptocurrency you have been searching for all these years.
Author: Raphael Minter
Raphael Minter/ Albert Zuhnden (preferred pen name) is a crypto finance writer, data miner, and fundamental analyst. Raphael has written hundreds of articles about centralized and decentralized financial instruments such as precious metals, commodities, stocks, and cryptocurrencies. He broke into digital finance in 2016 and believes digital assets and blockchain technology is the future of finance.