Ethereum is a global trend-setting blockchain that ranks second after Bitcoin in terms of popularity and market capitalization, and its unprecedented adoption has also created some operational issues in terms of slower speeds and higher transaction costs, resulting in a less than ideal user experience.
Ethereum’s extensive customer network is clogging its network and affecting its scalability, and a blockchain platform founded in India offers a solution to these challenges through its innovative and unique Layer 2 solution. Let’s find out what she does and why she has strong potential.
Polygon (with MATIC ticker) is a complete multi-chain system, framework and protocol. It connects Ethereum compatible blockchain networks and is designed to solve scalability problems in the current Ethereum network. It’s a Layer 2 solution, which means it works on Ethereum’s primary blockchain. Polygon uses side chains to reveal the main deck in a smart and inexpensive behavior.
Polygon’s multi-chain network provides infrastructure to facilitate blockchain networks that can communicate with one another outside of the main Ethereum chain, while maintaining the liquidity, security and interoperability of Ethereum.
Basics of MATIC
MATIC, the polygon token, is the underlying resource behind the polygon ecosystem. It is mainly used for betting token (proof algorithm) to protect the polygon network and serve as an asset.
The MATIC token has a maximum supply of 10 billion, of which more than 67% are already in circulation, and is currently one of the top 25 cryptocurrencies in the world with a price of $1.4 per token, with more than $9 billion market capitalization.
Short Term Technical Analysis
MATIC started at less than $0.02 per token in 2021 and hit an all-time high of $2.45 in May, making early investors (many of them from India) great multipliers on their investments gave and transformed its Indian founders into cryptocurrencies billionaires.
MATIC did well in the last quarter in terms of technical framework conditions and respected both resistance and support levels. It bounced off the strong .66 – .618 fibonacci retracement levels – also called the Golden Pocket – that it formed between July to September, before rallying nearly 40% to $1.42 as of today. It has now broken through the .382 fibonacci level and seems to be headed upwards of $1.5.
Given the bullish momentum on the charts, investors looking to get in should potentially wait for a drop to the $ 1.34 support level. If this level is lost, MATIC will find support at the USD 1.19-USD 1.2 levels, which is where its moving averages are currently 100-day and 20-day.
In the medium term (4-6 months), MATIC has the potential to crack the $5 and beyond to give more cheers to the Indians who have invested in the asset.
Future Potential
The potential of Polygon (MATIC) is linked to the strong performance of Ethereum. Ethereum 2.0 will alleviate some of the blockchain’s scalability problems, but Polygon will remain relevant as it has already shown significant success in integrating a network of companies and partners. The future of Polygon certainly looks bright.
