Why you should own at least 1000 Matic tokens most. Crypto experts who are conversant with trends know that the coin market now presents a window of opportunity to invest in some altcoins, including Polygon Matic.
Suppose you’re looking for crypto under two dollars to buy in bulk. Then, I come bearing great news. Because this article is about one of such, I’ll show you why Matic token should be part of your investment profile.
This article will find how Bitcoin price movement affects Matic, Polygons upcoming project, Matic price predictions. In addition, you might find resources explaining why Matic is the next token to buy but with no substance on what backs their claim.
Today it is not hard to keep track of important crypto news. However, getting information that will help in making sound investment decisions seems to be a very difficult task.
There are lots of resources out there that purport to help an average crypto enthusiast. Still, they end up confusing them the more or offer them no relevant tip as to navigate the coin market’s uncertainties.
What is the Polygon blockchain?
Polygon is, without a doubt, one of the hottest cryptos at the moment. The price of a Polygon token is up over 100% on the day. Despite this, its prices are still below two dollars, and the market cap is still less than 15 billion dollars on a fully diluted basis.
This is to say that although Polygon prices are flying right now. You haven’t missed the train on this one. This is a very technologically curious token with massive potentials. As far as the best crypto goes, Polygon leads the pack and here is why.
Polygon is ranked 16th on the coin market caps market with a market cap of over seven billion dollars. Polygon is both a protocol and a framework for building and linking Ethereum compatible blockchain networks.
The open-source technology offers developers tools to promptly deploy a standalone network or a secure sidechain that can optionally rely on the security of the Ethereum network through smart contracts.
While Bitcoin and Ethereum remain the widest known blockchains, they aren’t perfect platforms; they both have their shortcomings, and one of them is high transaction fees due to congestion.
They aren’t built for the type of traffic they are currently seeing. The founders of Polygon had this problem in mind while building their platform. So it was designed to eliminate the problem by using what is known as sidechains.
Here is the concept of side chains they are blockchains that are separated from but compatible with Ethereum. They exist to improve scalability and create alternative outlets for transactions.
Think of the main Ethereum blockchain as a highway, and these side chains are siding roads that can help lighten some of the traffic on the main highway in the course of a rush hour.
Sidechains have now grown popular because, with them, you feed two birds with a scone. On the one hand, you remove the high fees that come with congestion on widely known blockchains.
On the other hand, you will get to link up with the core technological advantages of popular blockchains, part of which are a strong community of developers. And an existing code infrastructure on such blockchains.
Experts in the crypto universe believe the side chains will be an essential building blockchain of the new blockchain economy. So that is one more reason to buy many Polygon tokens before the window of opportunity close.
The Polygon purpose, as earlier stated Polygon is a multi-chain network of side chains with each having a slightly different purpose and all of which are compatible with Ethereum.
Polygon is like a series of side roads that Ethereum developers can use to develop apps on time and cheaply on the Ethereum blockchain. The Polygon blockchain used to be called Matic Matic. Has now become a token symbol.
How does it work?
Polygon validators perform checkpoints against the Ethereum main chain periodically. And through cryptographic proof, this process provides a mechanism to resolve any transaction disputes that may occur on the side chain.
With this protocol, users can transfer tokens across Polygon without the risks of third-party contingencies and market liquidity limitations. Tokens that leave the Ethereum network are locked and represented as newly minted pegs tokens on the Polygon network 1.1
When the user moves back to the Ethereum network, the pegged tokens are burnt. Polygon’s operations are possible thanks to the security that the Ethereum network provides.
But its capacity to maintain security while allowing for scalability is what makes it striking. In addition, polygon uses the proof-of-stake mechanism, unlike the proof-of-work consensus protocol that Ethereum uses now.
Note that Ethereum’s proof-of-work protocol is more expensive when we consider computing resources. Apart from the proof-of-stake consensus mechanism, Polygon also uses an architecture called Heimdall.
Similar to traditional proof-of-work blockchains where any miner can validate transactions and make blocks, Heimdall randomly selects block procedures from the proof of stake validators in the network. This dual consensus architecture grants decentralization with a high transaction resulting in network scalability.
Upcoming Polygon projects
Polygon announces Polygonscan. A fast and scalable blockchain explorer for Polygon powered by etherscan. Polygon will soon be adopting Polygonscan. A blockchain explorer for its own platform, blockchain explorers, are among the most popularly used tools in cryptocurrency.
They fetch data from a blockchain and present it to a user in an accessible and searchable format. Etherscan.io is the most popular blockchain explorer for Ethereum with interesting features like the developer APIs, gas tracker, erc-20 and ERC-721 token trackers and many more. In addition, Etherscan will be facilitating Polygon’s blockchains explorer.
Polygon gets ready for the launch of Mahadao’s Arth 2.0 mainnet. Polygon is preparing to execute the launch of Arth 2.0 on its platform. In addition, Mahadao is forging more partnerships with Polygon by launching v2 of its decentralized algorithmic currency over collateralized fractional reserve currency Arth 2.0 on Polygon to achieve low-cost transactions and quick finality for off tokens. This development further reiterates the wide adoption of Polygons platform.
Polygon recently announced a 200000 liquidity program with Hop protocol to link Polygon on the multi-chain world. Hop plans to link the fragmented layer 2 landscape and enable smooth asset transfers and compensability between DeFi applications on different networks.
Uma wants to scale to Polygon. Uma is a decentralized financial contract platform that wants to scale with Polygon. The platform offers an open-source infrastructure for developers to build synthetic assets quickly, flexibly and securely on Ethereum’s blockchain.
With the Polygon scaling formula, Uma’s developers can enjoy a smooth experience while building synthetic assets.
Bitcoin and the price of Matic
How BTC price action affects Matic. Given the unmatched market cap of Bitcoin, its price actions per time can positively or negatively affect altcoins. And the entire coin market. So in determining to what extent BTC affects Matic.
Studying the correlation coefficient of both digital assets would give us a reliable outlook on their dependents. But, unfortunately, they have a negative coefficient. This means that their prices move in the reverse direction. As such, when BTC rises, Matic price often dips, and when Bitcoin takes a hit, Matic tends to increase in value.
If we assume the 90-day trading, horizon Matic is expected to generate 4.21 times more return on investment than BTC. But Matic is also 4.21 times more volatile than BTC as it trades about 0.19 of its potential returns per unit of risk.
At the moment, BTC is currently generating about minus 0.1 per unit of risk. So if you happen to invest 31.00 in Polygon on March 24th, 2021 and sell it now, you will earn a total of 105.00 from holding your Matic. Or generate 338.71 return on investment over 90 days.
Polygon price prediction
Projecting Polygon’s price can be tricky, especially when we consider how much it has gone up in the last few months. However, if it were to continue on that path as it has been since the start of the year, it would be more than 156 dollars by December 2021.
But most analysts seem to think it will rise but not that much and should remain stable. For example, digital coin price concludes that it could reach as high as 3.04 dollars in 2024 while wallet investor says it could hit.
The 5.126 benchmarks in 2022 and an incredible 19.265 dollars in 2026. When considering a Polygon Matic price prediction, we should factor in other cryptos that have similar price movements over the last year.
Maybe the best known is dodge coin. Dodge was around 0.0025 in mid-may last year and is not trading at around the 0.50 mark. So even though there are clear differences between the two currencies, they have both had a big upward trajectory.
While we have to see how the market behaves, I believe Matic would reach 1.50 at the end of 2021. – Stefan Bolzan