Polygon – The key to Ethereum’s scalability

Polygon is a Layer 2 scaling solution for Ethereum. The network had been around for a while and was originally called Matic. However, in February Matic was renamed Polygon, with tweaks and changes that resulted in the network taking the spotlight with its phenomenal performance. MATIC Coin’s return since the beginning of the year is a breathtaking 6,300%. The coin hit its all-time high at $ 2.68 during the peak of the bull run in 2021.

At the time of writing, the cryptocurrency stands at $ 1.12 and the market has been gripped by declining momentum lately. However, recent performance does not negate the fact that Polygon has good long-term potential. Polygon could become critical to Ethereum’s sustainability in the coming days – which will make it even more valuable.

What is polygon and how is it crucial for Ethereum?

Polygon’s framework enables the connection between blockchain. Ethereum’s scaling solution is designed to solve problems facing the second largest network in the blockchain space. Ethereum is considered a pioneer in the crypto space – second only to Bitcoin. The network introduced decentralized finance and decentralized apps that are deployed through smart contracts.

Since the ETH is now leading the DeFi area, it had to run into various problems. While high network activity and usage is a good thing for ETH, it can also lead to network congestion, which can lead to various problems – which was the case with Ethereum. During the bull run, Ethereum’s network suffered from issues such as slow transaction speeds, phenomenally high gas fees and overall low. All of these factors lead to user dissatisfaction. Layer 2 solutions for the queen of the market are designed to solve these problems.

The Matic network – its predecessor – used a technology called Plasma that processed transactions off-chain and then completed them on the Ethereum network. Polygon takes the offering to the next level and is a whole framework for delivering interconnected blockchains on Ethereum. Thanks to Polygon, developers can start ready-made and customized blockchains.

Is Matic Coin a Good Long Term Investment?

The 2021 Bull Run performance is proof of what Polygon can achieve. Ethereum is the queen of the market and its relevance cannot be overstated. So any network linked to the success of Ethereum will automatically give it a boost. That being said, Polygon also has ambitious goals other than scalability for Ethereum. The network envisions a limitless and open world in which there are no obstacles between or above the decentralized space.

With over 350 dApps live on the network and more migration from Ethereum due to its lightning-fast speed and low transaction fees, Polygon can be seen as a good long-term investment and there are still a lot of developments going on. Wallet Investor estimates that the one-year price is expected to be $ 3.39, while the five-year forecast is $ 12.42. Digital coin price is not as bullish on cryptocurrency, but it is forecasting an upward trend of $ 5, which will be exceeded by 2028.

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