Ethereum has gained much popularity in recent years, with the number of users and applications being developed increasing daily. This caused Ethereum to become clogged and experience high fees and poor user experience. While Ethereum did announce upgrades to its network, they will take some time to develop, and people needed a solution as soon as possible. That is how Polygon MATIC came to be.
Polygon MATIC is a high-speed blockchain scaling solution built on top of Ethereum. It allows the users of Ethereum to use their ground-breaking blockchain technology approaches to develop and scale applications and send transactions with much lower fees and better user experience while being much faster than Ethereum.
Polygon MATIC is the first scaling solution that started the trend of creating “Layer 2” blockchain networks. Layer 2 networks are essentially blockchain networks that build on top of Layer 1 networks such as Ethereum, allowing them to use their technology approach to scale much further and support many more users and applications.
MATIC token is used to govern and secure the Polygon network and for paying transaction fees on the network.
At the time of writing (May 16th, 2022), MATIC’s price is $0.67. The current Market Cap ranking is #17, with a market cap of $5.3B.
MATIC closed off the previous year excellently by hitting an all-time high price of $2.86 in December. That is an impressive gain from its price of $0.01 at the start of 2021. 2022 has started with a market correction that has seen all cryptocurrency prices fall off, including one of MATIC.
MATIC has had an initial token distribution that went as follows:
Matic has a maximum supply of 10B tokens, and currently, 7.85B are in circulation.
Matic is currently the most popular scaling solution in crypto that solves many problems Ethereum has. It also has a vast supply available, making it a popular coin with a lot of rising demand.
The primary way people buy their MATIC is through centralized exchanges because they offer the ability to purchase them with credit\debit cards, which most people prefer.
Although significantly more complicated, the second way is through decentralized exchanges such as Uniswap. Decentralized exchanges usually require users to already have some cryptocurrencies in their wallets to buy other cryptos.
Finally, it can be purchased easily through a broker app such as our Veli App, where you can get your hands on some MATIC in just a few taps on the screen.
Polygon was co-founded by Jayant Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bijelic.
Jayant, a full-stack developer, and blockchain engineer, currently serves as the CEO of Polygon.
Sandeep Nailwal is a blockchain programmer and entrepreneur.
Anurag Arjun is a product manager with stints in a couple of major companies, one of them being Cognizant Technologies.
Mihailo Bjelic is a VP of strategy at Polygon.
Polygon does not have an official roadmap, but we know that the team is focused on building out an Amazon Web Services for Web3, meaning that they want to offer a complete suite of solutions for every use case and scaling at the click of a button.
Polygon has a massive community revolving around it and its products. They are present on every major social media channel and usually attend every major and even minor blockchain event worldwide.
MATIC has been backed by many prominent funds, companies, and individuals, such as Tiger Global, SoftBank, Galaxy Digital, Republic Capital, Makers Fund, Alameda Research, Alan Howard, Dune Ventures, Alexis Ohanian’s Seven Seven Six, Steadview Capital, Unacademy, Elevation Capital, Animoca Brands, Spartan Fund, Dragonfly Capital, Variant Fund, Sino Global Capital, Kevin O’Leary, Mark Cuban, and Coinbase Ventures.
They have also raised $450M in their latest private investment round, which will fund further development and expansion of Polygon.
MATIC has not faced any substantial legal issues so far.
MATIC is available as an ERC-20 token on the Ethereum network, but it can also be used on the Polygon blockchain, BNB, Solana and Moonbeam.
Polygon’s main competitors are Loopring and OMG Network.
Loopring is another Ethereum scaling solution. The main differences between Polygon and Loopring are that Loopring is based on a distinct technological approach and is much slower and more costly than Polygon.
OMG Network is also an Ethereum blockchain scaling solution. It is slower than Polygon but faster than Loopring, and it has lower fees than both Loopring and Polygon.
Here are some other numbers that illustrate this competition better.
Polygon | Loopring | OMG Network | |
Transactions per second | 7,500 | 2000 | 4000 |
Time needed to confirm a transaction | near instant | near instant | 15s |
Average transaction fee | 0.1-0.5$ | 0.22-0.64$ | 0.10$ |
Market cap | $11b | $983.4m | $553.5m |
Circulation supply | 78% | 97% | 100.00% |
Total number of wallet addresses | 100m+ | 133k | 700k |
Total number of daily active users | 393.9K | 299 | 166 |
Launch date | 2019 | 2017 | 2017 |
Average growth rate | \ | \ | \ |
When it comes to investing, there are obvious risks, just as there are with any other asset type. Because there are so many types of cryptocurrencies, risks may be divided into two categories: generic risks that apply to all cryptocurrencies and coin-specific risks.
We’ve put up a guide that covers broad cryptocurrency investment risks and provides advice on how to reduce them, while risks related to individual assets are handled specifically in coin guides such as this one.
Twitter: https://twitter.com/0xPolygon
Telegram: https://t.me/polygonofficial
Website: https://polygon.technology/
Polygon is the most prominent layer two network in the blockchain industry. It was initially started as MATIC and was later rebranded to Polygon, while the native token still holds the name MATIC.
The previous year was a big one for MATIC, reaching its all-time high price and raising an investment of $450M to expand its project and vision further to become an Amazon Web Service for Web3. The year ahead will also be crucial to see how the release of Ethereum 2.0 impacts MATIC.
With a great team and vibrant community behind it, we can only wait to see where MATIC goes from here.
