The expanding Polygon market competes with Ethereum

by | Nov 11, 2022 | News, Polygon | 0 comments

Maximalists in the Polygon [MATIC] community have been having a nice time as a result of the recent occurrence of a variety of new advancements on the network. Lark Davis, a reporter with cryptocurrency news outlet Crypto reporter, revealed that MATIC had reached two billion transactions in its existence.

This is very important news for Polygon, which has been one of the scaling solutions for Ethereum [ETH] that has performed very well. However, this is not the end of the story since transactions based on polygons are quickly catching up to and even passing Ethereum.

Definition of Polygon

Polygon is a scaling solution that operates beside the Ethereum blockchain and is referred to as a “layer two” or “sidechain.” It enables transactions to be completed quickly and at a cheap cost. The native cryptocurrency of the network is called MATIC, and it is utilized for a variety of purposes including fees, staking, and more. Exchanges like Coinbase allow for the purchase and sale of MATIC.

What is meant by MATIC?

Polygon has its cryptocurrency known as MATIC, which is used for staking on the Polygon network, paying fees on the Polygon network, and for governance purposes (which means that MATIC holders get to vote on changes to Polygon). In addition, Coinbase and other exchanges make purchasing and selling MATIC possible.

During an early phase of Polygon’s development, the company was known by the moniker MATIC. After first debuting as Matic Network in October 2017, the creators changed the name of the platform to Polygon in the early part of 2021.

Polygon vs Ethereum: Who is doing better in the market?

Despite this, Polygon’s performance throughout this quarter has been better than Ethereum’s. According to Polygon Daily, the scaling solution completed around twice as many transactions on average as Ethereum did during this quarter.

In addition, the network reportedly achieved a new benchmark for Polygon-based NFTs, as stated by the Twitter feed for Polygon news known as Polygon Daily. According to this tweet, the monthly sales volume of NFTs on Polygon achieved an all-time high of $100 million in August.

Since February 2022, when the company had its last greatest performance, this is the first time Polygon has been able to break beyond the $50 million resistance barrier. OpenSea, the biggest NFT exchange, has just made it possible for users to list native tokens on Polygon and buy them using those tokens.

Where does the market stand now?

Having said that, Polygon released a statement on September 5 stating that they have welcomed Senken to their team. Senken is a marketplace for tokenized carbon credits that operates on the blockchain and enables users to purchase, sell, and retire tokenized carbon credits. These are produced via on-chain carbon infrastructure and services built using Polygon’s platform.

Where does MATIC intend to go?

After falling from its peak of $1 in August, MATIC was trading at $0.89 at the time of this publication. According to CoinMarketCap, the governance token used by Polygon saw gains of over 2% in the previous day, adding to the 5.2% increase it had had in the previous week. This puts Polygon in an excellent position to gain from the Merge since the increased scalability that Ethereum will experience as a result of the Merge will also be favorable to Polygon. Polygon’s expansion, on the other hand, faces significant challenges from the development of L2 scaling solutions like Arbitrum and Optimism. There is a lot of speculation going around that these two procedures will be in the driver’s seat when the L2 season rolls around again.