Polygon, an open-source platform, and protocol for connecting and constructing Ethereum-compatible networks of blockchain, is powered by the MATIC coin. Polygon developers aim to solve Ethereum’s fundamental shortcomings, including transaction speed and cost.
Polygon is rumored to be scaling shortly and will eventually overtake Ethereum. While the users wait for that event to happen, it would be helpful to understand MATIC crypto.
What Is MATIC?
Polygon (MATIC), originally called Matic Network, is an ERC-20 token that is an L2 blockchain network stacked on top of Ethereum.
Polygon transactions occur on child chains, which divert the bulk of the traffic away from the Ethereum parent chain. MATIC was originally intended to be a multi-chain scaling solution, but the redesign indicated a move to focus solely on Ethereum.
Polygon has developed as an independent finance sanctuary free of the exorbitant fees observed when trading straight on Ethereum from the time the network went online, and AAVE can be regarded as one of the major projects to transfer to Polygon. Polygon actually may be the long-awaited answer for Ethereum users. After being driven to a new high of USD 2.92, MATIC has taken a plummeting low. Following reports of a malicious attack, it has now plunged over 25% to the price it is on today.
Working of MATIC Coin
Polygon is essentially a multi-level platform that intends to grow Ethereum by using a myriad of side chains to alleviate the main platform in a cost-effective manner.
Sidechains are separate blockchains that are linked to the primary Ethereum blockchain and may support a variety of Defi protocols. As a result, Polygon may be likened to networks like Cosmos and Polkadot.
Developers can create a blockchain platform that is pre-configured with just one click, thanks to Polygon’s modular way of building customized networks. Polygon makes it easy for a blockchain to interact with one another without having to deal with any issues.
MATIC Current Market Status
MATIC is currently ranked 19th. In fact, on 27 December 2021, the price of MATIC reached a high of USD 2.92. Furthermore, it exceeded USD 2,454,537,766 million in just one day’s trading volume. Will MATIC be able to retain its positive stance in 2022 can only be seen with time, but things do look positive.
Advantage and Disadvantages of MATIC
Polygon offers a number of benefits over Ethereum, the parent chain. The benefit is that it has quicker transaction rates and cheaper transaction costs than Ethereum, which makes it an appealing chain for decentralized finance applications. Another benefit is that by staking Matic, one may receive incentives for safeguarding the network. While staking is available on Ethereum, the entrance barrier is substantially greater than with Polygon.
Polygon’s major benefit is that it has a lot of possible use-cases and is engineered to expand as user traffic grows, so it can theoretically be utilized for widespread adoption. Numerous projects have started moving to Polygon, indicating a user movement in favor of the newcomer.
There aren’t any drawbacks to Polygon as a whole. The most noticeable negative would be increased competition from alternative scaling solutions. Changing their focus to exclusively assisting with the scaling of Ethereum instead of any other blockchain project might pay out handsomely, but this may also mean that another initiative may emerge that would do what Polygon sought to accomplish when it was still known as Matic Network.
Experts Talk: MATIC Price Predictions 2022
For MATIC to retain its positive stance, it must break past the retracement level at USD 2.72 in the short-to-medium term scenario. It has to create further support at the Fib level of $1.48 to do so. Bears may take the upper hand and pull MATIC to their region if this does not happen.
In the meanwhile, Matic price prediction for 2022 is positive. Furthermore, it has a good chance of introducing a higher all-time high in 2022. However, MATIC crypto prediction will only succeed if it overcomes a few barriers.
The Polygon MATIC system has made tremendous progress in tackling the issue of blockchain scaling. Moreover, because the polygon platform’s tools and features allow developers to create their own networks, blockchain developers can enjoy developing their own decentralized network.