Polygon (previously Matic network) is an ethereum based project to overcome the shortcomings of the ethereum blockchain has reached a new height after its token crossed the $1 USD milestone today.
Polygon is a Layer 2 solution for any blockchain. It works on top of any blockchain in order to increase scalability and reduce gas fees. It will allow different blockchains to talk and transfer funds and information in a universal language. It is the internet of blockchains that has only been implemented on Ethereum so far and solves the following core problem of the ethereum network –
- Low Throughput
- Poor UX (gas, delayed PoW finality)
- No sovereignty (shared throughput/clogging risk, tech stack not customizable, governance dependence)
Many projects are exploring Ethereum-compatible blockchains as a way to mitigate these limitations while still leveraging Ethereum’s thriving ecosystem. However, there is no specialized framework to build such blockchains nor a protocol to connect them. This introduces significant development challenges and causes ecosystem fragmentation and polygon intends to solve all of this and more.
A popular analyst Young and investing had predicted that MATIC price may hit $1.5 by the end of May. It seems his prediction is right. Matic has already touched $1 and likely to reach $1.5 by end of the month.
The polygon price currently appears to be strongly heading upwards of $1 and moreover, an extended bull rally may lead to a new all-time high (ATH) every new day. The price gaining strong momentum is for the reason that, despite slight pullbacks, the price bounced back the strong support levels around $0.77 and instigated with a bull run.
The total value locked (TVL) in Payments in the DeFi space has currently crossed the $4 billion mark and the polygon network has dominated the area with more than 53% dominance outpouring the Bitcoin lightning network.
According to DeFi pulse, the TVL under the Polygon Network is currently $2.36 billion with a jump of nearly 8.93%. With the growing adoption and dominance, Polygon is expected to enter the top 10 cryptocurrency list very soon. This is going to be a hell of a ride for an Indian crypto startup where the govt is still unclear about its crypto stand.