Polygon is a layer 2 scaling solution platform that is well organized and easy to use for both infrastructure development and decentralized applications running on Ethereum. Binance and Coinbase are backing this project. MATIC is a Polygon Network ERC20 token. It is used for things like staking, running the network, and paying transaction fees. Polygon (MATIC) could be one of the digital assets you need to fill out your investment portfolio.
First of all, Polygon (MATIC) is not a common cryptocurrency. Instead, it offers something completely different from the most common cryptocurrencies that are used for transactions and from DeFi coins, which are used to power blockchains and decentralized apps.
Polygon, unlike Bitcoin, Litecoin, Dogecoin, Bitcoin Cash, and Dash, which use their blockchains to process transactions without the need for middlemen, is meant to speed up the way decentralized applications on the Ethereum network are processed.
The advantages of buying PolygonMATIC stock
Based on fundamental and technical analysis, the price predictions of several analysts show that Polygon has a great future because of its network and the future of its new token, MATIC. So, the following are good reasons to invest in Polygon (MATIC):
It has shown that it is not affected by how Bitcoin’s price changes
Polygon is known as MATIC when it trades on cryptocurrency exchanges. Even though all digital assets are called cryptocurrencies as a whole, MATIC and some others are called “alternate coins” (altcoins). During bullish engulfing and bearish times, altcoins tend to follow the price patterns of Bitcoin. One example is what MATIC did when the market dropped for the first time in 2021. Polygon Scales is faster, works with other systems, and has a lot of partnerships. In the fall of 2018, Deloitte, a firm that provides audit, assurance, tax, risk management, risk, and financial advisory and consulting services, listed the five most important things that need to happen for blockchain to be widely used. Deloitte thought that blockchain could change the financial world, but transactions were taking too long. Aside from these problems, the lack of standards was also a threat to its growth. The consulting firm said that the five biggest problems are better performance, interoperability, less complexity and cost, regulations that help, and more collaboration.
Has the backing of big investors and big players
Sandeep Nailwal, co-founder and chief operating officer (COO) of Polygon, said on the Consensus by Coindesk 2021 that Mark Cuban, a serial entrepreneur, and investor, has put an undisclosed amount of money into Polygon. Usually, the price of a cryptocurrency goes through the roof when a well-known person not only says he or she supports a project but also pours money into it. After making Dogecoin (DOGE) the official cryptocurrency of the Dallas Mavericks in 2021, Mark Cuban is one of the most well-known names in digital investments. Aside from this, he has been very vocal about how cryptocurrencies should be used in everyday life. His work with Polygon and its new token MATIC gives the whole project a lot of attention around the world and makes people do their own research on the cryptocurrency and make a decision about it.
The risks of buying Polygon (MATIC) stock
The good things about investing in MATIC make it seem like there can’t be any bad things, but there are. So that you can weigh the pros and cons of investing in MATIC better, let’s take a closer look at the disadvantages of cryptocurrency:
Once Ethereum’s proof of stake is fully in place progress will slow down
The only reason a layer 2 scaling solution was needed was that users of Ethereum’s decentralized finance applications complained about how slow the network was. This led to new companies like Binance and Tron, which used to run on the Ethereum network as ERC20 tokens, switching to their own blockchains, which could grow faster than Vitalik Buterin’s idea.
Blockchain technologies are a competitor
Polkadot and Chainlink are two new crypto projects that aim to offer the same features as Polygon. Polkadot and Chainlink both want to make blockchains work together, and they both offer the same solution for scaling as Polygon. Cardano, which is run by Charles Hoskinson, is excited to finally be able to use smart contracts on its blockchain.
Stopping crypto around the world
The bearish outlook of the market right now is due to problems with crypto mining in China. Strong regulation could wipe out investments in MATIC. Due to its lower price, Polygon’s new token could become one of the cryptocurrencies that get hit the hardest around the world.
