There are scalability challenges with the Ethereum blockchain. Whenever the network is overloaded with transactions, the gas fees peak. It becomes as expensive as hundreds of dollars.
This is where MATIC has stepped in. It has allowed users to access Ethereum DApps without giving higher fees or dealing with slow speed.
MATIC is thus defined as an off/side chain scaling solution for existing platforms.
What Is MATIC and How Does it Work?
MATIC (rebranded as Polygon in 2021) started in 2019, is a Layer 2 scaling solution for Ethereum and its apps. It also provides the platform for building and connecting other blockchain networks that are compatible with Ethereum.
MATIC works by reducing the transaction fees being charged for Ethereum networks. It also helps in fastening up transactions.
MATIC uses the following various technologies to create a fast and highly scalable network:
- Proof-of-Stake System – the transactions are validated by staking MATICs by users or delegating them to a trusted validator.
- MATIC Protocol – is through which the MATIC and Ethereum based blockchains get connected.
- Commit Chains – These are the transaction networks that work alongside Ethereum blockchain. The transactions are bundled together, confirmed, and then returns data back to the mainchain.
- MATIC Framework – It is a one-click system to deploy blockchains that are compatible with Ethereum.
Polygon uses its modular system to assemble custom networks. It then allows its developers to send preset blockchain networks with ease. In addition to this, Polygon helps any blockchain to cooperate with other blockchains without facing any challenges or issues.
Polygon side chains act as a vast universe of valuable chains of Ethereum. These chains offer project implementation and good working experience to all of their clients. Any of the decentralized apps which are based on Ethereum or other Ethereum-viable blockchains can easily be transformed to Matic Sidechain. This will allow these chains to work in an improved environment.
Price History of Polygon
The Polygon (formerly known as MATIC) cryptocurrency was launched through an “initial exchange offering” (IEO) on the Binance exchange.
MATIC was launched at an initial price of $0.00263. The supply at the time of launch was 3.23 billion tokens. The valuation of the project at the time of launch was pegged over $5 million.
MATIC remained under $0.04 for about two years before its rebranding. It was rebranded from MATIC Network to Polygon Network in February 2021.
Post the rebranding, Polygon price hit the highest peak of $2.40 in May 2021. This rise in token was more than 7,000%.
Is it profitable to invest in MATIC Coin?
MATIC has turned out as the most profitable currency in 2021. Experts believe that the price will further rise. The rise is linked to the rising popularity of Ethereum currency. Polygon provides the network for Ethereum, believed to have lowered the transaction fees and have sped up the transaction speed.
Also, the recent rebranding of MATIC to Polygon has caught the eyes of investors. It has brought a lot of publicity leading to the price gain and hence making the investment into MATIC a viable option.
Experts Talk on MATIC Price Prediction 2022
The Polygon has shown a strong performance in 2021. The earlier MATIC token registered a growth of more than 7,000% in 2021. This has made cryptocurrency the 14th largest currency in the world.
Polygon price opened at $2.58 at the start of the year 2022. As per the Matic prediction experts are of the opinion that Polygon price will reach $8.90 by the end of 2022. By the middle of 2022, experts expect to see Polygon reaching the level of $5.48.
And the long-term trends forecasting suggests Polygon price hit $5 by the middle of 2022 and then can even touch $10 by the end of next year (2023).
Price fluctuations and volatility comes with cryptocurrency. But with MATIC, analysts have seen the valuation surging in the last year. They see the value of Polygon rising in the next year too because of its growing utility and esteem.
Amidst the volatility of the industry, Polygon shows a positive and promising outlook in the next year (2022).