January 27, 2023
Polygon

Should Investors Seriously Consider Investing In Polygon As A Crypto Investment

Polygon, formerly known as the Matic Network, was developed to expand Ethereum and enhance its infrastructure. The project is based out of India that aims to make Ethereum blockchain transactions cheaper and faster.

What Exactly Is a Polygon?

Consider Polygon to be an express train. It travels on the same track as other trains (cryptocurrencies), but it is much faster and makes fewer stops. In this case, the track is Ethereum, and Polygon completes transactions faster than the Ethereum blockchain. Polygon is also the name of the Polygon network’s native cryptocurrency. The coins are traded under the ticker MATIC.

To secure the network and create new currency, the platform employs proof-of-stake, or POS, consensus. Polygon has a market cap of $3.386 billion and a circulating supply of 8 billion polygon coins.

Does this imply that Polygon is a secure investment? This guide will teach you the fundamentals of Polygon, how it works, and whether or not you should invest in its native currency.

Polygon Tokens in Circulation 

Every month, the token is released by the developers. According to CoinMarketCap, the maximum supply of polygon tokens is 10,000,000,000, with 8 billion, or 80%, in circulation. Polygon has burned or removed 650,000 coins from circulation since a mainnet upgrade in January.

Sixteen percent of the tokens are team tokens, 4% are advisor tokens, 12% are network tokens, and 23.33% are ecosystem tokens. The remaining 21.86% is made up of foundation tokens.

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What is the price of a Polygon?

According to CoinMarketCap, the price of Polygon as of December 7 is $0.8856.

It has a market capitalization of $3,383,635,846 and a 24-hour volume of $526,013,295.

Should One Invest in Polygon?

Because the Polygon platform has numerous applications, the polygonal coin has gained popularity among investors. However, if you are a beginner or are unfamiliar with polygonal tokens, it is critical to becoming acquainted with cryptocurrency before investing in it.

Here are a few things one should be aware of.

Blockchain Networks Framework

Polygon hopes to provide a framework for blockchain networks, allowing users to create interconnected blockchain networks — an “internet of blockchains,” if you will.

If this happens, developers will have a lot of freedom regarding network creation. They will be able to create self-contained, flexible, and scalable blockchains.

Given Polygon’s ambitious plans, the currency will likely rise in value.

Compatibility of Ethereum Virtual Machines

Many developers use the simple Ethereum Virtual Machine to create decentralized applications.

Polygon’s EVM compatibility makes it easier for developers to create and port decentralized apps. Many Ethereum apps, including SushiSwap and Aave, have been deployed by developers on polygonal.

Other Similar Networks

Before investing in Polygon, you must determine whether it will face any future challenges. The presence of other blockchain network projects, such as Avalanche and Polkadot, is the platform’s primary concern.

In the coming years, these projects may coexist, leaving no room for polygonal to be hyped. Additionally, Ethereum has also upgraded its platform – which was initially called Ethereum 2.0 and later referred to as The Merge. This Merge happened last month, which resulted in a transition from the existing proof-of-work chain to the new proof-of-stake chain. However, Polygon’s popularity has not been significantly dented even after this upgrade. 

Polygon’s Price Rise 

Polygon experienced incredible gains in 2021, increasing 13,000% between January and May, from less than 2 cents to $2.68. polygonal rebounded after a brief dip, reaching an all-time high of $2.8768 in December 2021. This higher price, however, lasted only a short time. polygonal, like most popular cryptocurrencies, entered a freefall in late December 2021 and appeared to be continuing to fall. 

2022 has been a bear market for all cryptocurrencies, but the polygonal token has stayed the same as some of its more well-known peers, reaching a low in June this year. polygonal has increased by up to 270% since its lows in June 2022, but it is still more than 50% below its all-time high reached in December 2021.

Is it a risk-free investment?

Whatever cryptocurrency you choose, it is critical to remember that these are volatile investments. You should be able to handle a significant price swing without panicking.

Consequences of Using Polygon

The disadvantage of Polygon is its reliance on Ethereum. The network competes not only with other currencies but also with Ethereum, on which it is also dependent.

Polygon developers argue that their network will remain relevant even if Ethereum 2.0/The Merge is realized because polygonal provides faster transactions and allows Ethereum to communicate with other networks. However, another programmable blockchain could replace Ethereum, taking polygonal with it.

Is Polygon a Good Long-Term Bet?

Polygon’s volatility is comparable to that of any other cryptocurrency. Its developers may have bigger plans for the future, but there is no way to guarantee that other blockchain networks or Ethereum will not cause the coin’s popularity and value to fall. Aside from that, the coin has yet to sustain its brief rallies this year, implying that the price may still be falling.

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