We're going to talk about Polygon Matic. Is it still a safe bet? And why you have got to stop looking at the price? Because I'm going to give you the reason about why Polygon Matic is essential first things.
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With Ethereum 2.0 coming out and with Cardano released smart contracts on its main net. Will Polygon be able to keep sustaining its growth?
Let me start by saying that Polygon Matic has strong fundamentals, and if that's enough for you, you can drop off this article. But if you want to know what those fundamentals are, then please stick around.
Many market participants believe Polygon Matic has more potential to grow and adapt to the evolving crypto space. As a result, Polygon is a preferred layer two solution, which is a very nice status to have.
It's like the us dollar having reserve currency status. Well, that's only for now because we don't know where they're going to go.
But what this layer two solution status means is that Polygon really is the thing to look at for Ethereum decentralized applications to leverage due to the congestion that we experience on Ethereum.
Because Ethereum can only do 30 transactions per second which are not enough if you're talking about just some small game, so for the games that are building on the blockchain, they have to use Polygon Matic, and gaming is huge guys.
Now, if we look at the native token Matic, we have seen that it has increased use data from glass node showed that the percentage of Matic held on exchanges steadily decreased from 24.6% at the beginning of 2021 to just about 2.27% at the beginning of August.
The plan for Matic is to become an integral part of scaling Ethereum, which is not very scalable right now. And let me tell you this now Ethereum is going to take some time.
They always take quite a bit of time doing these rollouts. Polygon is not just going to sit around waiting for them to do that. They're going to move.
Ethereum still has not yet implemented sharding which will bring the transactions per second that they can do from 30 to 65 000. İn the meantime Polygon is the answer.
Because Polygon has side chains to help scale up the number of transactions of Ethereum to potentially millions of transactions per second.
Which is why we see a bunch of decentralized gaming applications move on to Polygon because they require that capability in order to run.
All right next question you may ask is, what about Cardano. Now, if you're new to crypto and I've been glued to tradingview looking at the charts, you might have seen that Cardano has been posting some incredible gains recently.
And you might be questioning, ADA and Matic have similar price ranges. They're both in the 1.00 to 2.50 dollar ranges.
Now, why is ADA moving like hotcakes, at least, whereas Matic is still just staying frozen?
And you might have heard that ADA will overshadow Matic, and I'm here to say calm yourself. Because both ADA and Matic they both serve two different purposes.
Cardano's aim is really to compete against Ethereum and Bitcoin and to have control or some control of the defi marketplace. The defi industry.
That's the reason for its pump because recently, Cardano released smart contracts on September 12th.
So we just have a bunch of people trading on that hype that was the reason for the pump. And that has nothing to do with Polygon. Because like I said earlier.
The plan for Polygon is to become such an asset to Ethereum that holding it is a no-brainer. So it is not a direct competitor to Cardano.
And in all seriousness, how I see it, Ethereum and Polygon do basically what Cardano does. So with those two as a pair, there isn't that big of an urge to swap to Cardano because, with Polygon, Polygon adds the scalability that Ethereum users are looking for.
For those who are new to cryptos or those who are particularly curious and worried about the price. Stop looking at the price.
You know your friends bought into Cardano bought into ADA while you bought into Matic they've been seeing and telling you about some incredible gains. Well, all you've been seeing is nothing.
The tip here is to be patient. If you think that Polygon Matic is a crap project, then I think you're thinking about it all wrong.
And I always feel that whenever I get on my preaching chair that a lot of you all that are getting into crypto think it's a get rich quick scheme that is going to pan out for you.
If you are frustrated with Polygon, you have to understand that the staking balance of Polygon is at an all-time high.
And when it comes to cryptos, the amount of tokens that is staked to a network reflects the strengths of the network. And with the number of Matic tokens being staked on the network, it tells us that Matic is not a pump and dump coin.
It's a project a real project with a lot of believers. And with so many people staking locking up their coins into staking, that means that price is not going to move as quickly. Because what you really need for price to pump is volüme.
Because with volume comes the movement of price. For most of the people locking up their coins, there's no big volume which means that the price of the coin stays where it's at.
So i̇ think that there would need to be some huge nudes for stakers to really unstake their coins in the network and start taking profits.
One of the reasons that triggered the rise was that the number of Polygon active addresses exceeded the Ethereum network for the first time this week.
This highlights the growing interest in using its ecosystem, especially among leading dapps like Aave, Curve Finance, and Sushiswap.
As it is known, Ethereum's own blockchain network supports more than 300 dapps in its ecosystem with a market capitalization of more than $ 9 billion.
The network has witnessed a sharp increase in the number of new addresses in the past month, adding more than 2.5 million new addresses on September 23rd alone.
High gas fees and network congestion issues on the Ethereum network have fueled address increases and token price spikes while driving demand for l2 scaling solutions like Polygon.
Polygon's price has risen over 5,500% in the past year and may receive further support from fundamental developments.
One of the most notable recent developments was the Polygon network, which offered a $1 million grant to Quickswap dex to increase adoption among users.
Similar to the situation with Aave earlier this year, the grant can help increase the overall locked market value of Quickswap by providing certain higher levels of liquidity and increasing its use among users.
Another big news I wanted to share with you is that Ren is on Polygon. So you can bridge your assets through Redbridge on Polygon now.
It is a project you would want to hold because it is a crypto project with less visibility than Matic, but it could potentially see the same kind of price prompt as Matic.
Because it also has some layer two l2 capabilities and sharding in it. And remember, layer two l2 and sharding is what helps us increase the scaling, increase the transactions per second.
But the main advantage of Ren isn't really that it is like it said. Instead, it enables the movement of value between the blockchain.
So say you want to trade Bitcoin on the Ethereum blockchain well. Right now, you cannot do that. But with Ren, Ren makes that possible.
So just imagine the possibilities that would open for us. And with Polygon, it makes the fees much more cheaper than if it was done just on Ethereum.
So that's one project that I won't talk about right now or get deep into right now, but you can look into it yourself because there is a lot of potential with that one, so that's just a tip-off.