Polygon, formerly known as the Matic Network, was developed to scale Ethereum and strengthen the system. This initiative, which is situated in India, aims to speed up and reduce the cost of transactions on the Ethereum blockchain.
What Is Polygon?
Polygon can be compared to an express train. It travels on the same track as all other trains, but it does it more quickly and with fewer stops. In this illustration, the track is Ethereum, and Polygon completes transactions more quickly than the Ethereum blockchain. The native cryptocurrency utilised on the Polygon network is also called Polygon. The MATIC ticker is used to trade the coins.
Proof-of-stake, or POS, consensus is used by the platform to protect the network and produce new money. There are 8 billion polygon coins in circulation, and the market worth of Polygon is $3.386 billion.
Does that imply that investing in Polygon is secure? You will understand the fundamentals of Polygon, how it functions, and whether or not you should invest in its local currency in this article.
How Does It Work?
Anyone who has ever transacted on the Ethereum blockchain is familiar with the network’s exorbitant transaction fees and protracted fulfilment timeframes. These issues are resolved by Polygon by offering a decentralised platform that enables inexpensive transactions.
In its own words, the network is a layer 2 scaling solution. Up to 65,000 transactions per second are possible on each side chain thanks to its special transaction fulfilment technology. Millions of transactions on the blockchain may be possible in the future thanks to the system’s utilisation of proof-of-stake checkpoints. In the Ethereum ecosystem, decentralised finance protocols are supported by Polygon’s side chains as well.
Have You Heard?
According to community consensus and proposals, Polygon intends to expand its support to additional base chains but at this time only supports Ethereum as the base chain.
Polygon Tokens in Circulation
Every month, the token is released by the creators. According to CoinMarketCap, there are a total of 10,000,000,000 polygon tokens available, and 8 billion of those, or 80%, are now in use. Since a mainnet upgrade in January, Polygon has burned, or removed from circulation, 650,000 coins.
A total of 23.33% of the tokens are in the ecosystem, 12% are network tokens, 4% are held by advisors, and 16% are team tokens. These foundation tokens make up the remaining 21.86%.
How Much Does Polygon Cost?
Polygon’s price as of June 21 is $0.4231, according to CoinMarketCap. The market capitalization is $3,383,635,846, and the volume over the past 24 hours is $526,013,295.
Should You Invest In Polygon?
The Polygon platform offers a wide range of applications, hence the Polygon coin has gained popularity among investors. However, it is essential to become knowledgeable about cryptocurrencies before making an investment in them if you are a newcomer or don’t know much about polygon tokens.
Here are some essential details.
Framework for Blockchain Networks
Future blockchain network frameworks from Polygon will enable users to build interconnected blockchain networks, or a “internet of blockchains,” if you will.
Developers will have a great deal of freedom to create networks if this happens. They will have the ability to create independent, adaptable, and scalable blockchains.
Given Polygon’s expansive goals, it is possible that the value of the money will increase in the future.
Ethereum Virtual Machine Compatibility
The approachable Ethereum Virtual Machine is used by plenty of developers to create decentralised applications.
Polygon makes it simpler for developers to design and port decentralised apps thanks to its EVM support. SushiSwap and Aave are just two of the Ethereum applications that developers have released on Polygon.
Other Similar Networks
It’s crucial to ascertain whether Polygon might encounter any challenges in the future before making an investment. The presence of competing blockchain network initiatives like Avalanche and Polkadot is the platform’s main worry.
In the upcoming years, it’s possible that both initiatives may begin to cohabit, negating the need to promote Polygon. Additionally, Ethereum is working to update its platform. The Merge, the update formerly known as Ethereum 2.0, will cause a switchover from the current proof-of-work chain to the new proof-of-stake chain. Once the merger is finished, it can make Polygon less well-liked.
Polygon’s Price Increased by 13,000%
Between January and May of 2021, Polygon had remarkable growth, rising 13,000% from less than 2 cents to $2.68. Polygon recovered after a temporary setback and reached an all-time high of $2.8768 in December 2021. This increased cost was temporary, though. Like the majority of well-known cryptocurrencies, Polygon entered a free decline in late December 2021 and seems to still be going down. Polygon is currently selling at $0.4231 as of June 21. Use this as an illustration of the market’s volatility and the necessity for caution when investing.
Is It a Safe Investment?
Regardless of the cryptocurrency you decide to invest in, it is important to realise that these are risky ventures. If prices fluctuate substantially all of a sudden, don’t freak out. Instead, you should feel comfortable with it.