15 Reasons Why You Should Invest In Polygon

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Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Last Updated October 13th 2022
18 Min Read

There are lots of reasons why you might want to buy Polygon. Many think that they have to be a savvy investor with lots of capital — but, with some common sense and research, it’s pretty accessible, even for beginners.

Polygon is a cryptocurrency or a protocol based on the Ethereum network. It was developed by Sandeep Naiiwal, Jayanti Kanani and Anurag Arjun. This protocol was initially called the MATIC network, but it was later rebranded to Polygon network and with more features and functionalities. 

Its token MATIC powers the Polygon network of this multi-chain scaling solution for Ethereum. This network aims at enhancing the operability between the Ethereum platform or blockchain and other compatible networks. The network is an open-source technology that enables developers to create independent networks or side chains using smart contracts.

It also gets to utilize the Ethereum network’s security. It is a popular scaling solution in the decentralized finance industry. Launched in October 2017, this protocol provides a layer-2-scaling solution that improves the operability of DeFi applications. 

If you are looking for altcoins to invest in, consider having Polygon among your portfolio. With its features, it shows some promise for growth. Here are some reasons why you should consider putting some money into this coin. 

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

15 Reasons Why You Should Invest in Polygon

There are all kinds of reasons why you might want to invest in Polygon — probably some you’ve never considered. Here are 15 that we found. And If you are a long-term investor, Polygon could be a very good investment for you.

1. Polygon has a Very Clear Roadmap

With so many cryptocurrencies in the digital coin market, it would be prudent to invest in one that has a clear path. Most of the available cryptocurrencies have nothing substantial to offer if they have anything at all. Should you invest in the Polygon coin, you can rest easy knowing that they not only have a plan but are already implementing it and providing practical and real solutions.

The individuals who developed this coin identified gaps in the market and did their best to fill those gaps. Considering their experience, knowledge, and skill in software development, you can expect that the team behind this project will continue working diligently to keep this coin afloat and relevant.

Among the most important solutions, they have provided the scaling ability that most blockchains had failed to provide in the cryptocurrency industry. With their side-chain innovation where developers can create applications side to side with the Ethereum network, you can expect this coin to go up in value considering the efficiency this technology provides, and the extent to which it lowers the operational costs. Even though Ethereum has a plan to improve its platform to scale up its transactions, it will take a while before it can make Polygon the network of choice.

2. Continued Improvement

If you are wondering why you should invest in MATIC, then is the first reason that you ought to consider. The performance of any token or coin in the last six months is a good indicator of whether or not you should invest in it, especially if you want to do a long-term investment. From February 2021, this token has shown tremendous improvement. The price of this token was at 0.7 cents in February. It reached its peak in December 2021 when it hit $2.91.

Due to the 2022 crypto market crash, MATIC's price has dropped and its currently trading around $0.75, but most of the experts thihnk that the coin has the potential to reach $2 by 2025. If you have just $100 to spare, you will have a good profit if the coin were to hit $2.

It would be more than a 160% change in price. It is doubtful that the price will dip further. Keep in mind that the rate of return on investment at the time of writing was 16,327%, so this projection is not a long shot. 

Read Also: Polygon Price Prediction - Will MATIC Rise in Value?

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

3. Its Use as Governance Token

Most cryptocurrencies are coming to the scene as currencies trying to replace conventional fiat currencies. Many of these in the market have lost relevance, considering that their pioneer Bitcoin is already leading and deeply rooted on this front. Polygon has a different approach similar to that of the Ethereum network but much better. Like ether, the MATIC token acts as the governance token of the Polygon’s network.

The network provides a scalable platform for decentralized applications developers to work on. Its scalability makes it way cheaper than the Ethereum network, so most developers prefer to work on this platform. Additionally, it takes advantage of the Ethereum network’s security by utilizing its side chain technology.

That means that developers on the Ethereum network can work on it without having to change any protocol on the mother network. This functionality has given its token MATIC immense value and will grow if it does not get a viable competitor.

MATIC is the fuel running this project, so developers must acquire the token to develop anything on the platform. As more developers acquire the token, the demand will push the price of these tokens up making it a viable investment opportunity.

4. Market Capitalization 

Market capitalization refers to the summative value of all the coins that have been mined. You arrive at this figure by multiplying the existing coins in circulations with the coin’s current price. The market cap is an indication of how stable a coin or an asset is in the market. The higher the value, the more stable the coin. 

A stable coin means that its price will not be affected significantly in case of market fluctuation as one with a smaller market cap. The current market price for MATIC is $0.75 and has a circulating supply of 8.73 billion tokens giving it a market cap of $6.48 billion. Compared to Bitcoin which has a market cap of $364 billion, MATIC is a relatively stable altcoin. It sits among the top 15 coins with the largest market capitalization. 

Considering this aspect, you can consider having a few of these coins in your portfolio. It is stable and a coin that you can liquidate easily if you ever need to. 

5. Multiple Use Cases

As already mentioned, Polygon provides a scaling solution for those who need to develop decentralized applications similar to those on the Ethereum network, but now at a faster rate. Ethereum still faces scalability issues preventing the mass adoption of these applications. Polygon provides the solution to numerous developers on the Ethereum network.

Most of these developers have since integrated their developers with the Polygon network. As more and more developers adopt the use of the Polygon network, its token MATIC continues to gain value and increase in price. In addition to providing a scalability solution, this protocol is also ideal for decentralized finance. Many financial institutions are likely to take advantage of its low fees to enhance their transactions on the platform.  

6. Strong Partnerships

Most cryptocurrencies are pump and dump projects with no future or any use cases. They are just focused on collecting as much money as possible from unsuspecting investors, especially during their initial coin offerings, and then just melt away. Polygon is a serious project that has already attracted serious investors and partners. 

Polygon began working with GraphLinq Protocol. GraphLinq is taking advantage of Polygon’s layer two solutions to save on gas fees. Polygon's block time is just about two seconds, making the cost of a single transaction about $0.00004, which is way cheaper than most other blockchains. 

Users on the GraphLinq network must pay gas fees in GLQ tokens to execute transactions on its network. There are now more users since the gas fee is low compared to that on the Ethereum network. The more users that get on board, the higher the value of the MATIC token becomes. Keep in mind that this project currently has the highest number of partners in the crypto industry, and they keep increasing by the day.

Another serious partnership was with the Kyber Network. The main aim of their integration was to assist the Kyber Network based on the Ethereum network to utilize Polygon’s solution to improve the liquidity of its application. The Kyber network, using Polygon’s scaling solution, has now established Rainmaker, the first liquidity mining program.

Its founders claim that this program will significantly help in decentralized finance. This program will bring more liquidity to the Polygon blockchain and effectively bring more activity to the MATIC token pushing its value upwards. 

Check Out: Pros and Cons of Investing in Polygon

7. There is a High Demand

MATIC, the token that is powering the Polygon network, is experiencing a high demand similar to bitcoin and ether. The practical solutions that it brings on board have seen it adopted by other blockchains in a bid to scale up their transactions and reduce the cost of transactions. Currently, the Polygon network allows up to 100,000 transactions per second, far much higher than Ethereum's 30 transactions per second. 

Developers find creating DAPPs on Ethereum costly, considering its sluggishness that ultimately increases the cost of transactions. The Polygon network's ability to transact more than 100,000 transactions per second makes it very cheap and very attractive to users. It is for this reason and others that the MATIC token is in high demand. This demand will see its price go up steeply soon. 

8. High Trading Volume and circulation

High trading volume and circulation is an essential factor to consider when selecting a digital currency. If a coin has a high trading volume, it means that you can liquidate it easily. In simple terms, it means that you can easily find buyers and sellers. 

Such assets are easy to trade daily. You are never stuck with tokens when you need liquid cash. In the last 24 hours, the trading volume for MATIC was approximately $300 million, with a circulating supply of more than 8.7 billion tokens.

If you own about 100,000 tokens, they would be worth just about $75,000, which means you could easily sell them all in the last 24 hours if you needed to do so. Investing in this token is a safe bet if you want to speculate on the market in the short term. 

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

9. Relation to Ethereum

Ethereum is the second-largest cryptocurrency in terms of market capitalization after bitcoin. Currently, one ether token retails at just over $1,270 and has a market cap of about $156 billion. Polygon is connected to the Ethereum network working as the network’s scalability protocol. 

Users on the Ethereum network can now pay very low prices to transfer digital currencies at high speeds on this network. The relation to the Ethereum network directly affects the price of MATIC

Anytime the Ethereum network gets congested, users turn to the more effective Polygon network pushing the price of its token higher. So you could peg your decision on the performance of ether. 

10. It’s a Top Altcoin

There are thousands of cryptocurrencies on the market, but most of them are just trial projects with no ideal use or value. Only a few of these digital currencies, including MATIC, have any real value. 

At the moment, MATIC sits at number 13 of all the cryptocurrencies in terms of market capitalization. This position shows its potential to grow even further, making it an ideal altcoin to include in your portfolio. 

The good thing with Polygon is that it is less affected by Bitcoin’s price fluctuations. The independence means that it will create its growth path, making it a good investment option. It will grow based on its usefulness and practicability rather than on the movement of another cryptocurrency. 

11. Low Entry Point

Most investors focus on the top digital coins such as Bitcoin and ether as possible investment options. They tend to overlook altcoins such as Polygon that have a lot of potentials. Bitcoin and ether, though promising, have very high entry levels. You would need close to $19,000 to buy just one Bitcoin token and about $1,300 to get one token of Ether. 

If you focus on leveraging on token volumes, then Bitcoin and ether are not your ideal digital coins. You would need a lot of money to get just a few tokens meaning that you could also lose a lot of money if the price of these tokens were too deep, like it recently happened with Bitcoin. Polygon is just about $0.75 at the time of writing this article.

If you have $1000 to invest in this token, you could get upwards of 1333 tokens. If you are a short-term trade, this token could easily gain a dollar in a few weeks considering its potential. If you are going to invest in the long term, projections show that the token could potentially get $2 in just about two or three years.

If it does, your 1333 tokens could amount to $2,666, giving you a $1,666 profit. It shows that coins retailing at a low price and with good potential are a good investment option if you want to leverage volumes.  

12. Prominent Personalities are Behind the Coin

There are prominent people in both the crypto space and in mainstream business that is behind this cryptocurrency. Among them is Avinash Shekhar, the co-CEO of ZebPay. He terms the Polygon project as one of the best performing tokens in the crypto market. Another prominent person that has taken an interest in this token is Prateek Singh, the founder of LearnApp.com. 

Prateek gives important pointers on how a digital coin gains value. He notes that a coin can rise due to social media hype and the practical value it provides. MATIC, or rather Polygon he asserts, has both, and more so the reasonable value. Both, however, warn that it is essential that you get to understand any digital cryptocurrency you wish to invest in before putting your money in it. 

A prominent individual in the mainstream business that has taken an interest in this project is Mark Cuban. Cuban is a media mogul worth billions. He has invested in other cryptocurrencies but has taken a keen interest in Polygon. He commented recently that Polygon is a well-structured and easy-to-use platform that is also good for scaling up transactions on the Ethereum blockchain. 

While it is not clear how much the billionaire has invested in this project, he is giving it a boost by integrating it into his non-fungible token gallery called Lazy.com. The incorporation of this token into this gallery will see its price rise significantly. 

Don't Miss: Why Polygon (MATIC) Will Skyrocket

13. Polygon Enrolled on Grayscale and Other Crypto Exchanges

Polygon has a high likelihood of getting enrolled on Grayscale. It will stand a chance of spiking up in price just as Stellar and MANA did when the same company launched them a while back. 

Grayscale is a CoinDesk subsidiary, while CoinDesk is among the most established crypto exchange. Having Polygon’s token MATIC listed on this platform would boost the Polygon network and probably spike up its price. 

In addition to Grayscale, MATIC is also listed in other popular crypto exchanges such as Binance, WazirX, and Gate.io among others. A cryptocurrency must be listed on popular crypto exchanges to make it easier for you to buy and sell. Coins that are not listed on established exchanges can be very difficult to liquidate. These listings also make the Polygon token MATIC easy to buy. You do not need any technical expertise to do so. 

14. Polygon has high Speculation

Like all cryptocurrencies, Polygon is also gaining from investors and traders' speculation. When traders are interested in a particular asset, they can push its price up by creating a temporary demand before having the price stabilize. Polygon is an exciting project and has some attractive features that are drawing in many crypto enthusiasts. 

As more and more enthusiasts get on board, the price of this token is likely to go up steadily for some time before this speculation can wane off.  There is also the aspect of social media speculation. Polygon has a fan base that is appreciating its ability to scale up crypto transactions. 

As an investor, you can take advantage of this speculation and get some tokens in your portfolio. You could earn some reasonable sum before the price of this token stabilizes. This, among many other reasons, is an excellent reason to have this token as part of your portfolio. 

15. Attracting DeFi Projects

In addition to partnerships, the robust Polygon framework is attracting a lot of DeFi projects. A lot of these projects are shifting to the much cheaper and more scalable Polygon network. This network is more scalable and more affordable, than the Ethereum network but is still pegged on the Ethereum network. 

This movement will work in favour of this token and will work to stabilize its price. It will also help cushion its price against market fluctuations often affected by the movement in the price of Bitcoin. 

These, among other reasons, are essential factors that you should consider if you want to invest in the Polygon project. However, keep in mind that all digital coins are volatile and may be worth something today and nothing tomorrow. You need to be extra careful before investing in any coin. 

Do your due diligence and ensure that you understand the cryptocurrency you wish to buy before committing your funds. Ensure that you analyse all projections and know when to get in and when to exit. If you are lucky enough, you could make good money, but you could also lose. 

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.