Why Polygon Potentially Is the Best Cryptocurrency to Buy Under $2
The growing popularity of Polygon is not accidental
There is a lot of negative noise around cryptocurrencies right now. From China cracking down on crypto, to regulators going after Binance, the negative sentiment is strong. However, beneath all this noise, adoption is growing and the fundamentals are looking better than ever. This makes it a perfect time to buy cryptos at dip discounts. Speaking of discounts, Polygon is very attractive now that it is back under a dollar.
Polygon has shed off a huge chunk of its value since the bear market started in May. From an all-time high of $2.62, Polygon is currently trading at $0.94. This means $100 can give you 106 MATIC tokens right now. Just two months ago, $100 would have given you 38 MATIC tokens. The fact that its core fundamentals have not changed means it is trading at a deep discount and presents a good opportunity.
For anyone looking to accumulate on good altcoins under $2 in this bear market, this one stands out.
So What Exactly Is Polygon?
While there are thousands of cryptos in the market today, Bitcoin still stands out as the foremost payments crypto. Ethereum has also established itself as the number one platform blockchain. However, the two are still facing a problem that makes their widespread adoption almost impossible. That problem is one of scalability.
Polygon is the project looking to solve this problem on the Ethereum blockchain. It aims to solve this problem through layer two side chains on the Ethereum blockchain.
To avoid getting too technical, side chains are just like side roads that help ease traffic on the main road. In the context of Ethereum, they handle some transactions rather than have the Ethereum main chain handle every transaction.
The idea of sidechains has gained popularity over the last couple of years as the ultimate solution to scalability. So significant is the idea that it is one of the core aspects of Ethereum 2.0 through Ethereum Optimism.
However, sidechain scaling is not all that straightforward. There are several competing ideas when it comes when to the use of side chains. Two of the most dominant ones are plasma and optimistic rollups.
Each has its pros and cons, but Rollups seem to be winning, mainly because it is the approach chosen by Ethereum Optimism. Rollups also have the advantage of an easy fallback to the Ethereum main chain if a sidechain fails or is under attack.
Regardless of which approach to sidechains is winning, they are a big deal to the adoption of blockchain technology. They are the key to a future where blockchain technology revolutionizes the internet, and decentralization becomes the next revolution in the digital age.
It is for this reason that investors are finding projects like Polygon very interesting.
Read Also: 15 Reasons Why You Should Invest In Polygon
Since it is still unclear which approach to sidechains will win, Polygon is adopting multiple scaling solution strategies. This is part of its rebrand from Matic to Polygon.
The project currently uses Plasma sidechains, but it has indicated that it is looking to implement Optimistic Rollups.
Essentially, this guarantees the project success as part of the solutions that will help scale Ethereum.
The use case of Polygon as an Ethereum scaling solution is quite huge. For context, it will significantly lower transaction costs to a level where they are almost negligible. This could see an explosion of projects on Ethereum, ranging from financial applications to government applications.
This dynamism in the project is a huge pointer to its future direction. Not only does it guarantee it a future with the upcoming Ethereum 2.0, but it also makes it a pretty good project to hold at current prices. It is a project that has the potential to retest, and even surpass its all-time highs.
The Bottom Line
This is an exciting time in cryptocurrencies. With the entry of institutional players into the market, fundamentals will have a much bigger role in which cryptos succeed long term.
Cryptos with solid fundamentals are likely to draw in more investments, while hype tokens could fade away.
Using this criterion, Polygon comes across as one of those projects with a huge growth potential.
The project is solving a real problem, one that could unlock the mass adoption of cryptocurrencies. With the upcoming Ethereum 2.0 implementation, more projects looking to build Dapps solving real-world issues will look to Polygon. This makes it a pretty good bet long-term.
We aren’t done yet. Besides Polygon, many other projects hold very good prospects going into the future.
You are probably wondering, how does one build a portfolio of crypto winners? Well, while there is no crystal ball to tell what will succeed or fail, there are a number of easy pointers on how to invest in the right cryptocurrencies.
The most obvious one is the use-case. If you are looking to build a portfolio of winners, then you should probably focus on projects that are solving real problems. Such projects are guaranteed to draw in users, and that plays into their demand long term.
Meme coins can make you money if you catch the wave at the right time. However, the prospects of building wealth through them is pretty limited. That’s because once the excitement fizzles out, so does their value.
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Virtual currencies are highly volatile. Your capital is at risk.