Cryptocurrencies? The course of this crypto is + 150% over 30 days!

The price of cryptocurrencies has been at half-staff for several weeks. Bitcoin, Ethereum, Cardano, Dogecoin, Binance Coin… although they are affected differently, these cryptocurrencies have all experienced a decline! However, one promising crypto held up better than the others.

Source: Adobe / Prostock Studio

What is Polygon Crypto (MATIC)?

Created as Matic Network in 2017, this crypto was renamed Polygon in 2021. To be precise, Matic Network was the name of the project that gave birth to this crypto. That’s why “project Matic” and “project Polygon” are used interchangeably even now.

PolygonMatic logo

Unlike Bitcoin, which is just a means of payment, Polygon is more complex. Polygon is one use of DeFi which works with a blockchain that is compatible with Ethereums. Currently, it is the fourth largest DeFi app in terms of assets under management with over $ 7.05 billion.

The objectives of the Polygon MATIC crypto

To understand the mechanics of Polyong, it is necessary to talk about Ethereum. Ethereum is Bitcoin’s big rival. Ethereum blockchain, developed by Vitalik Buterin in particular, carries the gigantic DeFi sector that is currently structured. Ultimately, Ethereum thus intends to establish itself as the queen’s blockchain of finance 2.0 or decentralized. Nevertheless, it is clear that Ethereum is a victim of its own success. The large number of transactions creates congestion in the Ethereum network as well as rising fees.

Faced with this situation, Ethereum is implementing several developments in parallel. This is where the Polygon crypto comes in. That is the project MATIC is a second tier blockchain solution. What does it mean ?

blockchain network
Source: Adobe / your123

The polygon is a blockchain that uses POS to communicate “side chains” with the Ethereum blockchain. Thereby, Polygon makes it possible to redirect streams to secondary parallel block chains (side chain) to limit the congestion of the Ethereum network.

We could do itanalogy to a game of poker e.g. After a game, players who plan to return the next day write down their winnings (or losses) on a piece of paper. This will allow them to stay in the game and continue where they left off. This corresponds to the polygon as level 2 of the blockchain. Now players who want to stop and leave the game will demand their money. This corresponds to level 1 of blockchain. Specifically, for “DeFi use”, the user can do everything directly on the Polygon. The only time he will have to go through the Ethereum blockchain is when he wants to resell his coins.

Another analogy, even simpler, would be to compare the polygon with network of secondary roads which makes it possible to redirect traffic and thus relieve the main motorway network (Ethereum).

MATIC blockchain makes it possible to process a large number of operations. It is thus assessed that its scalability is 65,535 transactions per seconde. As a reminder, Bitcoin is 5 transactions per second and 20 per second for Ethereum (development is underway to improve that).

The course of matriculation

Although it has been around for several years, it was during the cryptocurrency crash of 2021 that the polygon really came out of the shadows. In fact, we can not help but notice that the Polygon cryptocurrency has not suffered as much during the crisis as the other cryptocurrencies in the top 20.

The performance of the Matic token

To be convinced of this, just look at the cryptocurrency performance over 90 days. The polygon is the crypto of the top 20, which shows the largest progression: no less than 800% over the last 90 days. During the same period, Ethereum rose by only 73% and Bitcoin fell by 21%.

In the short term, Matic is also one of the chips that performs best. In the last 7 days he has increased by about 9%. It is thus one of the only 3 cryptocurrencies in the top 20 that remains in the green. Only Theta performs better with an increase of 17%.

Performance comparison of Matic and Ethereum

It is also interesting to compare the development in the prices of Matic and Ethereum. Let’s do the exercise last month. Here’s what the price of Ethereum looks like during this period:

ETH course April-May 2021
Source: Coinmarketcap.com

There is a slight increase until mid-May, then a decrease until 23 May, followed by a slight improvement.

Let us now look at the Matic curve over the same period.

MATIC course April-May 2021
Source: Coinmarketcap.com

At intervals of a few days, the order of general trends is largely the same: increase – decrease – improvement. However, the variations of Crypto Matic have been much greater. But above all, Matic has rose much more than it fell !

The price of Matic started the month at € 0.59 and is currently at € 1.55, an increase of 160%. In comparison, the ETH fell from € 2150 to € 2106, a slight decrease of 1.5%.

It therefore appears that Maticen has coped with the crisis much better and come out stronger.

Polygon’s predictions

The Polygon crypt provides a concrete answer to the two major problems encountered by the Ethereum network: high transaction fees and network congestion leading to slowness. Furthermore, Matic has proven that it has the resources to cope with a major cryptocurrency. Signals seem to indicate that Matic is a promising crypto. What do the specialists think?

For coinpedia.org, all lights are green! They envisage a $ 5 (€ 4.1) Matic by the end of 2021 and a rate of around $ 15 (€ 12.3) by the end of 2022. For DigitalCoinPrice, the progression will be slower. Thus, they predict that the price of Matic will reach € 2.4 in 2026.

Keep in mind, though, that the crypto market is changing very rapidly, and “small” news events can have a big impact. Recently the billionaire Mark Cuban revealed his growing interest in Matic. The official announcement came via a tweet from Polygon on May 25th.

Mark Cuban is therefore now an official supporter of Matic. This is likely to contribute to the reputation of the polygon crypt and increase demand!

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