Polygon (CCC:MATIC-USD) crypto is a layer-two Ethereum (CCC:ETH-USD) blockchain. It was often known as Matic till it modified its identify in February, holding the MATIC token identify. The backers of Polygon wished to focus on its new options as an interoperable and scaling community. This makes it helpful for decentralized finance (DeFi) purposes.
Polygon now payments itself as “Ethereum’s Internet of Blockchains.” It features as a software program improvement package (SDK), or a platform that permits builders to launch preset blockchain networks. As such, it’s a multichain system.
Polygon is the twenty first largest cryptocurrency with a market capitalization of $12.5 billion as of Nov. 9. Thus far this yr, the MATIC token has achieved fairly properly. For instance, it ended final yr at 1.781 cents per token. However as of Nov. 9 mid-day, it was at $1.83.
Furthermore, within the final three months, Polygon crypto has risen 58% from $1.1576 on Aug. 9. That is even after the crypto peaked at $2.4544 on Might 18.
In different phrases, Polygon has been fairly unstable — like many cryptos this yr — however it’s clearly on an uptrend.
Polygon’s Workforce and Focus
One of the vital necessary features of analyzing a blockchain is reviewing its staff. Polygon has a decentralized staff of contributors from all around the world that proceed growing the open-source community.
Polygon has four co-founders: Jaynti Kanani, Sandeep Nailwal, Anurag Arjun and Mihailo Bjelic. All of them have in depth software program expertise. For instance, Sandeep Nailwal, the COO of Polygon, was additionally the co-founder and CEO of ScopeWeaver.com. That firm produces decentralized apps (dApps) for companies.
The corporate’s identify change to Polygon was to focus on, amongst different issues, its capacity to scale back transaction charges for customers of Ethereum-based purposes. In different phrases, it permits another scaling resolution for Ethereum.
For instance, Polygon each will increase transaction speeds and dramatically lowers transaction charges. So, it has multifaceted (therefore, “poly”) strategy to the blockchain points that presently plague Ethereum. In actual fact, some referred to as it one of many unique “Ethereum killer” blockchains.
Polygon has a method of getting round Ethereum’s scalability downside. It builds “snapshots” of varied chains and makes use of them within the blockchain community. That is necessary for high-speed and large-scale transactions, particularly within the DeFi area.
What to Do With Polygon Now
Earlier this yr, Polygon introduced by way of Twitter (NYSE:TWTR) that it had secured an investment from Mark Cuban. He’s a major proponent of cryptocurrency investments, as he sees these belongings as an indelible a part of investing sooner or later.
The purpose right here is that if an funding in Polygon is sweet sufficient for Mark Cuban, who’s well-known as one of many unique Shark Tank buyers, it needs to be good enough for others. Nonetheless, he does really feel that some regulation ought to come into play — particularly with stablecoins.
However Polygon isn’t a stablecoin. It is going to be unstable. It would develop in worth in scale with Ethereum, which it’s designed to compete in opposition to.
So what ought to buyers do now? The truth that Polygon has risen a lot this yr would possibly put some off. In spite of everything, most cryptos took an enormous hit in the course of the spring. Might this occur once more?
The reply is sure, it would undoubtedly occur once more. That’s as a result of it’s fairly clear MATIC tokens are extremely unstable.
However the crypto has been on an upward development. The overall worth locked up (TVL) in Polygon purposes has additionally been rising, as could be seen at Defi Llama. As of Nov. 9, it confirmed that $5.16 billion was in deposit as MATIC tokens, both in exchanges or dApps. Furthermore, the chart reveals the development in TVL is rising over time.
That means the worth of Polygon will proceed to rise, particularly as its function as a viable various to Ethereum grows.
On the date of publication, Mark R. Hake didn’t personal any safety talked about within the article, instantly or not directly. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Guidelines.