Many investors have taken a closer look at the market in recent weeks, as the prices of cryptocurrencies have risen more strongly again. It was noticeable that the MATIC token of Polygon in particular has risen sharply again in recent weeks. What makes Polygon so special right now and could it be the future of cryptocurrencies?
In this article, we look at the future of the crypto market and see how Polygon could help determine and even dominate the future.
What is Polygon (MATIC)?
Polygon is a scaling solution for the Ethereum blockchain. Due to the increasingly high gas fees and low transaction speeds, Ethereum needed an additional solution to speed up transactions and the execution of smart contracts.
Polygon is a layer 2 solution for Ethereum. It makes it possible to develop your own dApps and connect the Ethereum blockchain to use the Ethereum ecosystem. The main network of Ethereum is relieved by the introduction of sidechains. By redirecting transaction load to the sidechains, transactions are accelerated.
What makes Polygon so special?
Polygon is the scaling solution for the Ethereum blockchain. This gives Polygon access to the huge Ethereum ecosystem. But Polygon can handle the weaknesses of Ethereum very well as a Layer 2 solution. This makes Polygon very scalable and the transactions are executed much faster.
Polygon will continue to develop continuously. Because Polygon plans to become a multi-chain solution. This allows Polygon to build its own ecosystem, but at the same time benefit from the robustness and established security of the Ethereum network. As a result, the polygon network is currently growing extremely strongly.
Does Polygon have a future?
As a scaling solution from Ethereum, Polygon has an extremely good foundation for becoming successful as a cryptocurrency in the future. But in recent months, doubts have repeatedly arisen as to whether Polygon can continue to exist alongside Ethereum. This question arose mainly in connection with the fact that Ethereum is due to the update Ethereum 2.0, which should make the Ethereum blockchain faster and more efficient.
In this article you can read more about Ethereum 2.0.
However, Polygon should continue to grow despite the new update on Ethereum. The Polygon Blockchain is currently building its own multi-chain network as a layer 2 solution. Due to its high scalability, Polygon’s growth is massive. Furthermore, Polygon has a high level of trust among users due to its association with Ethereum.
How high can polygon rise?
Polygon’s token is called MATIC. This is the former name of the network, before it came to Polygon re-branding. The price of the MATIC token has risen quite sharply in recent months. The rise of MATIC preceded the rises of other cryptocurrencies. Meanwhile, Polygon (MATIC) is on the 13th place of the most valuable cryptocurrencies and thus has an excellent future.
Polygon price over the past 30 days, Source: Coinmarketcap
At the moment, the price of the MATIC token is $ 0.86. Many analysts are extremely bullish on Polygon (MATIC) for the medium and long-term future. So we could already see the value of 10 dollars in the next bull market (probably from 2024). In the long term, even $ 100 could follow in the next few years.
Which cryptocurrencies are Polygon’s competitors?
Cryptocurrencies that have a high scalability should be a group that will perform extremely well in the next few years. This includes Polygon, which has a very big advantage due to the association with Ethereum. But there are also other candidates for cryptocurrencies, which should grow massively in the next few years due to their high scalability.
Cardano is a blockchain that has been constantly evolving in recent years. The Cardano network is long-term oriented and has been continuously developed for years. The Cardano Foundation uses scientific methods for the further development of the blockchain.
Cardano wants to massively increase its scalability in the next few years. The Basho development phase should make the Cardano blockchain one of the fastest blockchains on the market. This could bring Cardano to the top of the crypto market.
Solana has been extremely successful in 2021. This was due to the fact that the blockchain can theoretically reach transaction speeds of up to 50,000 transactions per second. The high speeds and extremely high scalability ensured that Solana was able to quickly climb into the top 10 cryptocurrencies.
Unfortunately, Solana has had to suffer several network crashes in recent months. There are also greater concerns about the security of the Solana blockchain. But if Solana can eradicate its weaknesses, it can be a serious competitor for Polygon in the future.
Another blockchain that has become one of the fastest blockchains in 2021 is Avalanche. Like Solana, Avalanche transactions can be executed extremely quickly. The scalability of the blockchain is also extremely high.
The high efficiency and scalability of Avalanche is based on the combination of 3 different chains on which the tasks of the network are distributed. In the future, Avalanche could also play an important role among highly scalable blockchains.
Should you invest in Polygon now?
While Polygon (MATIC) has seen a strong increase in value in recent weeks, the price of the MATIC token remains extremely low in the future. Therefore, it could be extremely worthwhile to buy Polygon now and benefit from possible price increases in the future. At the latest by the next bull market, the MATIC price should rise massively again in the next few years.
Polygon is a project that has the potential to become one of the most dominant blockchains on the market in the future. The price potential is extremely high. In addition to Cardano, Polygon is one of the projects that is likely to grow the most in the long term. Therefore, you could now purchase Polygon today at these low prices and earn extremely high returns in a few years.