Crypto investors who are looking to diversify their portfolios are always searching for the “next Bitcoin.” By this, they mean emerging assets with a lot of room for growth. Experts consider Polygon to be one such digital asset platform.
MATIC is an Ethereum token used to power the Polygon Network, an Ethereum multi-chain scaling solution. Polygon, formerly known as Matic Network, aims to improve interoperability between the Ethereum blockchain and compatible networks. Over the past few years, the platform has seen a significant increase in traffic.
Based on critical considerations, MATIC appears to be a rewarding investment in 2021 and beyond. Polygon has witnessed its market cap surge more than tenfold since February, thanks to the rising use of its blockchain by decentralized finance (DeFi), gaming, and non-fungible tokens (NFTs).
Why Choose Polygon?
Polygon began as Matic Network, but it rebranded as Polygon as the scale of the protocol grew. Originally, Matic Network was only a Layer 2 Scaling Solution, but later it became an ecosystem of independent, collaborative, and interactive Ethereum-based blockchains.
To understand Polygon better, we can view it as a four-layer system where the first layer is the Ethereum layer. The second layer is the security layer, the third is the Polygon networks layer, and the last is the execution layer. Thus, every layer plays a varied role in how the platform works.
Polygon was built for the scaling of Ethereum decentralized applications (dApps) and other blockchains. This is done via features like ETH compatibility, scalability, security, interoperability, user experience, developer experience, and modularity. In other words, Polygon increases the processing speeds of all applications and blockchains deployed on its network.
Polygon's unique offerings make it an attractive investment opportunity.
Is Polygon Going to Skyrocket in 2021?
MATIC and Cardano (ADA) were among the few digital assets to resist the recent bearish outlook of the crypto market. They did not follow the plummeting paths of BTC and ETH.
With Polygon's ongoing partnerships with other financial technology companies, MATIC is likely to continue to rise in price since it is used on the Polygon network to settle transactions. Polygon is poised to record significant volumes on its platform. As liquidity poured into the asset through its network increases, it would positively reflect in the valuation of the cryptocurrency.
Check Out: Pros and Cons of Investing in Polygon
Factors That Help Polygon Surge to New Heights
#1 Rising popularity
Many developers who favoured Ether based on millions of Ethereum users are integrating Polygon to help their dApp complete transactions quickly. Currently, there are more than 400 decentralized applications on Polygon.
Some of the protocols leveraging Polygon include crypto exchange platform OKEx, decentralized lending platform Aave, decentralized exchange SushiSwap, and multi-chain yield optimizer Beefy Finance.
Additionally, NFT and gaming platforms such as Decentraland, Neon District, Vulcan Verse, Mega Crypto Polis, Valuables by Cent, Crypto Skulls, Whale Street, Nifty Eggs, Cargo, Sandbox, etc. have been integrated with Polygon.
Many experts believe Polygon will continue to be the scaling solution of choice for numerous players in the DeFi sector. The CEO of OKEx, Jay Hao, pointed out in an interview that “Polygon is one of the most efficient full-stack scaling solutions for Ethereum, so the transactions on Polygon are fast and cheap. And Polygon has already integrated with most mainstream DeFi applications. We would love to give our customers access to all these great products and financial opportunities.”
#2 Unique features
Polygon helps other blockchains and applications to collaborate with its network in a fast scaling manner while lowering costs. Aside from this, Polygon aims to reduce the complexity of scalability and enable instant blockchain transactions.
Using a customized version of the Plasma Framework built on the proof-of-stake (POS) algorithm, Polygon handles up to 65,536 transactions per block on each sidechain. This means Polygon processes around 65,000 transactions per second (TPS), leading to several partnerships in the process.
Currently, more than 400 dApps are using Polygon’s infrastructure. These include applications in decentralized finance, NFT & gaming, decentralized autonomous organizations (DAO), oracles, wallets, and business-to-business (B2B) technologies.
#3 Rising trading volume and price
MATIC opened on 28th April 2019 with a trading volume of $8,408,136 and was trading at $0.004521. With rising volumes that saw MATIC record $74 million in May 2019, activity reflected positively in price to see the digital asset surge to $0.008667.
MATIC reached its all-time high of $2.68 on 18th May 2021. On that day, the trading volume of MATIC was $8 billion. At the time of writing, MATIC is trading at an affordable price of $1.15.
The trading volume and price of MATIC are poised to surge in 2021, based on its surging fame and adoption.
One of the primary drivers of the price of a crypto asset is its exchange listings. Polygon’s MATIC is currently listed on the largest crypto exchanges in the world. This includes Binance, eToro, OKEx, Huobi Global, Coinbase Exchange, CoinTiger, etc.
Why Polygon Will Skyrocket: Expert Predictions
Although it is not possible to predict the price of a crypto asset precisely, analysts consider vital factors to estimate the prices of these assets.
Digital Coin Price has predicted MATIC to command a price of $1.57 by the end of 2021. Experts further project the digital asset to reach $1.89 by the end of 2022, $2.29 (2023), and $2.84 by the close of 2024. In the long term, the technical analysis-backed portal anticipates MATIC to trade at $3.28 by 2025 and $4.85 on 31st December 2028.
Should You Invest $1000 in Polygon Right Now?
Similar to other digital assets, the price of MATIC is a bit volatile. So investors must be aware of this and consider Polygon a part of their broader diversified crypto portfolio. That said, MATIC is likely to generate massive returns in the future. So investing in MATIC now could be a great idea.
The Bottom Line
Polygon is a growing network with solid fundamentals, so many investors see it as a worthy long-term bet. However, remember to perform due research before investing in any crypto.
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