What Makes Polygon (MATIC) a Good Cryptocurrency Investment?
Polygon was designed to improve and scale Ethereum infrastructure. It aims to speed up and simplify Ethereum-based transactions. The Polygon concept can be compared to the idea of an express train. This train runs on a similar track, but makes fewer stops and moves faster.
The route in this example is Ethereum, where Polygon processes transactions faster than Ethereum itself. Polygon is not only the name of the native cryptocurrency used on the Polygon network, but also the name of the network itself. On the coins is a ticker symbol for to find MATIC.
To secure the network and introduce new currencies, the platform uses proof-of-stake consensus. There are 8 billion polygon coins in circulation with a market cap of $3.386 billion. Are Polygons Safe Investments? It tells you about Polygon, how it works, and whether it’s worth investing in.
polygon token
Tokens are released by developers every month. Polygon tokens have a total supply of 10,000,000,000; according to CoinMarketCap, there are 8 billion in circulation. Polygon has burned 650,000 coins since its mainnet upgrade in January. Team tokens account for 16%, advisors hold 4%, network tokens account for 12%, and ecosystem tokens account for 23.33%.
There are 21.86% of Foundation tokens left. There is a market cap of $3,383,635,846 and a 24-hour volume of $526,013,295 for this stock. Investors have been drawn to the Polygon coin due to its many uses. Investing in Polygon tokens requires some familiarity with cryptocurrency, especially if you are a beginner or don’t know much about it.
The following things are important to know. A framework that Polygon plans to offer for creating interconnected blockchain networks — an “Internet of Blockchains” — will allow users to develop interconnected blockchain networks. Blockchains can be flexible and scalable, allowing the creation of networks in a very free manner.
Polygon’s ambitious plans are likely to result in future currency appreciation. Thanks to its user-friendly interface, developing decentralized apps is easy with the Ethereum Virtual Machine. Because of Polygon’s integration with EVM, developers can quickly and easily build and port decentralized apps. Ethereum apps including SushiSwap and Aave have been deployed by developers on Polygon.
How does it work?
It should come as no surprise to anyone who has traded on the Ethereum blockchain that the network charges high transaction fees and executes orders slowly. Polygon enables low-cost transactions by using a decentralized platform. Layer two scaling is described as a feature of the network.
On each sidechain, it can process up to 65,000 transactions per second. With the help of proof-of-stake checkpoints, millions of transactions could be carried out on the blockchain. Additionally, Polygon’s sidechains support decentralized finance protocols within the Ethereum network.
Other similar networks
The most important thing to do before investing in Polygon is to determine if future obstacles may affect it. For the platform, Avalanche and Polkadot are the main competitors. Polygon has no place to be hyped anytime soon when these projects start to coexist. In addition, Ethereum is working on updating its platform.
This upgrade, originally known as Ethereum 2.0, will replace the current proof-of-work chain with a proof-of-stake chain. There is a possibility that Polygon’s popularity could drop once the merger is complete. In a matter of months, Polygon is up 13.00%, from less than 2 cents to $2.68. It returned to its all-time high in December 2021 at $2.8768.
However, it didn’t last long as the price returned to its previous level. A free fall began for Polygon in late December 2021, like many other popular cryptocurrencies. According to the latest trade data, Polygon is trading at $0.4231.
Take this as an example of market volatility and caution when investing. Cryptocurrencies are volatile assets no matter which one you choose. In times of price fluctuations, you should not panic.
positive
The Polygon may be considered a safe investment by some while not by others. Cryptocurrency-loving billionaire Mark Cuban invested in Polygon. Additionally, Polygon is on a hiring spree as many crypto companies, including Coinbase and BlockFi, lay off employees.
This may be due in part to many high-profile partnerships. Aside from the NFL, Project Polygon has been used by Nike, Adidas, Prada, Macy’s, Dolce & Gabbana, Macy’s, Adobe and Meta. The platform currently supports more than 7,000 decentralized applications. Its wide range of dApps will remain relevant for a long time.
negatives
In Polygon, Ethereum is its downside. Ethereum is also a competitor as the network relies on it. According to Polygon developers, Ethereum 2.0/The Merge will still be relevant when Polygon offers faster transactions and Ethereum allows communication with other blockchains. Another programmable blockchain could destroy Polygon in the future if Ethereum loses its place.
Is Polygon a good long-term investment?
Like all other cryptocurrencies, Polygon is volatile. There is no way to guarantee that other blockchain networks or Ethereum itself will not cause the coin’s value or popularity to decline in the future. As a result, the coin’s price could yet fall as its brief rallies this year have not been sustainable.
Polygon is available on multiple cryptocurrency exchanges including Binance, BiONE, UniSwap, WhiteBIT, ZebPay, Coinbase Pro, Huobi Global, Hotbit, KuCoin, Uphold, Gate.io, and BitYard. You should not invest more than you can afford to lose if you want to invest in it.
Edited and proofread by Nikita Sharma
