Why Polygon (Matic) Is A Solid Bet
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Why Polygon (Matic) Is A Solid Bet
Of all the cryptos since the hard crash Polygon (MATIC) has actully held decent ground and has also been one of the largest rallies since crypto leveled out. There's actully a lot to this blockchain and token and today I'm going to deep dive into where I believe it's headed.
I have to get the legal fun out of the way first. This article is not investment advice and is for entertainment purposes only. It is of my own personal opinion. Do your own research before investing and understand the risks before investing.
Polygon (MATIC) was split from Ethereum but one critical aspect of it is it's created by some of the former developers of Ethereum who left on good terms. This is why Ethereum and Polygon (MATIC) pretty much go hand in hand with a lot of projects and has become one of the first accepted layer 2 chains for Ethereum.
Polygon (MATIC) at it's core is developed in a way to try and help reduce fee costs and transaction times for Ethereum. That's pretty much its function and its done a rather good job of it minus a few hickups. Yes it's crazy centralized where they can take down the blockchain to do updates etc but it's one of the best and most accepted second layer tokens for reduced fees and faster transactions. In fact I pay about 1/10th what I do on the Binance smart chain so I see Polygon eventually warming up to take over a lot of grunt work of Ethereum which would be huge.
Polygon (Matic) currently ranks 6th among total locked value for DeFi platforms. If you want to use a Polygon (Matic) defi platform I would recommend PolyCub. The total locked value only comes in at about 1.23 billion dollars worth compared to Ethereum to 50 billion. It clearly goes to show that Polygon has a very long way to go however just doubling the defi locked value would put it top 4 almost top 3.
If DeFi isn't your thing you can then stake Polygon (Matic) for about a 4% to 10% APR depending on how much you trust the system you are delegating to as you share the risks when doing delegation on Polygon.
In the last week a long Polygon has seen a massive 28.4% gain when compared to the rest of the top market caps who are mostly still negative. It's even beaten out Ethereum at not nearly 11% gain. This starts to paint a very bullish target on Polygon and also why personally I've started to heavily get involved with PolyCub Defi
What's Fueling Polygons Growth?
#1 - Polygon has announced some rather big partnerships. This comes during what would be one of the worst bear markets for crypto ever. These partnerships include Coca-Cola and Reddit who are launch NFT markets on Polygon. This could be the future for the next NFT rally where people still want Ethereum but don't want to pay those heavy $80 fees again. Polygon is offering that solution and it's growing.
Polygon has also been selected by Disney to be the only blockchain included in 2022 Disney Accelerator Program. The mission for this is a business development program designed to accelerate the growth of innovative companies from around the world.
What Could Happen Next
Right now Polygon is in a hyped up phase so for now It's not a buy for me but instead a hold and stake/defi move. I believe the price will come down over the next month but perhaps pick back up if Ethereum launching PoS system.
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As we've spoken about before, I'm curious to see what happens IF Ethereum can get their fees down.
Ethereum is king and Polygon's role right now literally just 'a cheaper alternative to Ethereum'.
In today's relatively high-fee environment, we're still seeing how hard it is for projects like Polygon to compete with Ethereum in the DeFi space.
If fees on Ethereum come down, will it be completely game over for all these EVM chains?
Only time will tell!
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That's an interesting angle. COuld Ethereum theoritically reduce fees to be as cheap as Polygon though? I mean, lets assume in a couple years time when Ethereum has switched to POS and everything, with a price of say, $3k per ETH, could gas fees be as low as 1-10 cents?
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Probably never but Layer 2 solutions could replace every single sidechain out there. For example, you can use ZK Syncs on Ethereum and swap assets with $0 fees while the transaction still gets executed on ETH.
Insane tech is being built while EVM zombie chains try to cannibalize each other.
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There sure is room for a few EVM-compatible chains even if Ethereum deals with fees but I doubt we will have enough users to populate all of them.
My personal expectation is that we will see a few of them die in the next 3-4 years once the initial hype phase is over. A lot of them already struggle to achieve any usage in these market conditions. What happens if things get worse?
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It could be game over, but perhaps there are enough people out there in it for the yields in the polygon defi.
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One day I may have to eat these words but in 5 years I haven't had to so lets keep it going.
Eth is broken and by the time they find a fix the baton will be passed. In the last crypto winter all the building was done on eth because it had no real rivals . That meant when the bull market started it was primed to go and we had DeFi summer and the NFT explosion that furthered the story of Eth.
However, by the end of the cycle things were changing. Not changed for eth really which had single product launches that drove gas fees into multiple thousands of dollars again, but for the market, many rivals were popping up while the only way to get involved in eth was to have enough capital to be able to learn the ropes while making tons of expensive mistakes.
I just don't have any faith they can fix it after watching them fail to do it for 5 years and I don't think the market is going to continue to have the patience for it going into the next bull market. I say that but I was expecting this past cycle for eth to be the catalyst for the blow off top both on the way up and the way down and I still feel like that needs to happen. Eth needs a send off.
Very nice this post on MATIC. I too think that MATIC has a good future ahead of it. I want to start using some applications and first I think I will try REVV Racing, play to earn game dedicated to motorsport.
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Matic is a buy for me, in small amounts with the attention it is getting from Disney and other places I expect the run to last a little longer.
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Everything you says about Polygon is very interesting, the truth is that I already knew that Polygon is a very good project, and many of these things that you mentions, but one of the things that I did not know, is what you said about CocaCola developing NFT projects through of Polygon, without a doubt that this will mark a before and after in the Polygon chain, in the field of NFTs and in the crypto space in general.
I particularly develop NFTs on the Polygon blockchain, and I intend to continue doing so, because the future of NFTs, in my opinion, will not be in Ethereum, but in Polygon.
Very interesting publication. Thanks for sharing. Greetings.
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Here is what you're not telling people, MATIC will fail, if it were to succeed in any meaningful way, other so called "L2"s will copy it and simply offer lower fees through their reworking of inflation, to attract liquidity to their system
It's a race to the bottom for remora chains on ETH, since they have their own system and token, they are not interoperable, all they doing is balkanizing the system to suck up one LSM over another.
Lets take MATIC for example, the poor peoples ETH, if all the poor shitcoiners go to matic it frees up space for the others on ETH who get better spreads and deeper liquidity
then those that see hey eth is working pretty well again take their capital back to ETH until they feel poor on ETH again, its just recycling capital while sucking out fees, basically the banking system all over again
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На Matic чеканят NFT поетому он будет рости.
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Excellent post, well written and you bring up some good points. =)
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I've always been wholesomely bullish about the prospects of Matic and I remember seeing those deals announced on Twitter and thinking about how bullish this might be for Matic token.
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They are killing it in every domain. 🔥 One of my hot favorites.
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Polygon does seem to be a good bet financially but there is something fishy about it, I just can't put my finger on it yet.
They advertise as an "Ethereum sidechain" while in reality Polygon has nothing to do with Etehreum. Yes, it is EVM compatible but so is Binance Scam Chain, they are no different.
The low fees stem from extreme centralization and the last time I checked Polygon was secured with one single multisig wallet. I personally don't like that fact but I do keep using it because it works, for now.
The third issue I have with Matic is that it seems to be attracting too many mainstream names too quickly for a project that brings absolutely zero innovation to the table. You already mentioned Reddit and Coke but there are a hundred more brand names that you would never expect to endorse a blockchain yet here we are.
I'm not saying that all of this is necessarily bad but it does feel odd and somehow rushed. Seems to me that the people behind Matic aren't the faces we keep seeing on Twitter and reading about in the official docs but it could just be my badly thought-out conspiracy theory...
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I'm guessing it's good news for polycub holders. And Disney could bring on a good amount of adopters, maybe?
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It could however the training done today most likely wouldn't see any real adoption/results for a good 1-5 years later. Still a long term bullish sign though.
I just hope that it can really handle the growth. I know just simply trying to claim something takes a while, lol. Also have issues with Polygon using my DAO where my DAOs on BSC have no issues what so ever.
I mean fees are cheap, but at the same time I haven't had the issues on BSC, at least in a long time, that I have recently had with Polygon, and BSC fees really aren't that expensive anyway.
Very skeptical about Polygon myself. Been trying to build an NFT market on it, and it hasn't been great in testing honestly. Plus... I am not a fan at all of the companies they are announcing partnerships with. I understand that exposure is exposure, but do we want Disney and Facebook being that exposure, lol. Two of the most corrupt companies on the planet.
Just this dude's 2 satoshis on the subject, lol.
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I was doubtful of Polygon but it has proven to be the top ETH contender as a L1/L2.
I never understood why people say it is a L2 btw, could you help me out understand this part?
Great read!
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good
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