Polygon: MATIC Still Worth It? Here’s What You NEED To KNOW!

As ethereum’s transition to Proof-of-stake approaches many are Wondering what the upgrade could mean For ethereum’s scaling solutions Polygons pos sidechain is one of Ethereum’s most popular scaling Solutions and the project has been Working on other scaling solutions too This begs the question of what the merge Could mean for matic So today i’m going to give you a quick Breakdown of polygon bring you up to Speed with some of the project’s most Important updates and tell you why Ethereum’s merge could be bullish for Matic [Music] Before we talk layer twos i need to make Sure you’re not confused if you see Anyone saying i’m a financial advisor Know that it’s a ruse that’s because Entertainment and education are the only Things i defuse please contact a Financial advisor if your portfolio has Been skewed also note that i hold matic As part of my portfolio but i won’t let My bias affect this review Now if this is the first time you visit My name is guy and i’m here to show you That crypto is more than illicit i do That by creating high quality crypto Content that will make you fidget Coins tokens news reviews and other Subjects that are seriously legit

If you’re looking to make more than Digits subscribe to the channel and ping That notification bell widget okay That’s it for the intro bit let’s see if Matic is about to get lit If you’re unfamiliar with polygon here’s What you need to know Polygon was founded in 2017 by gianty Kanani sandeep naowal and anurag arjun Polygon was originally called matic Network and mihailo bielik was added as The fourth co-founder of the project When it rebranded in early 2021 Polygon was built by polygon technology A software company based in india Polygon’s development is coordinated by The polygon foundation a non-profit Which is presumably also based in india Polygon raised around 5.5 million Dollars across three icos in 2019 and Raised an additional 450 million dollars From various crypto vcs in a token sale Earlier this year This makes polygon one of the most Funded crypto projects post ico which Suggests that the project has long term Potential As i mentioned a few moments ago polygon Began as matic network and the matic Network mainnet went live in the summer Of 2020. Today the matic network is known as the Polygon pos chain and it’s just one of Many scaling solutions the polygon

Offers as part of its mission to scale Ethereum Now as i mentioned in the introduction The polygon pos chain is a side chain For ethereum as such you can think of The polygon pos chain as being a copy of Ethereum that runs parallel to ethereum Except it can process around 7000 Transactions per second compared to Ethereum’s 15 transactions per second The speed of the polygon pos chain is Made possible by the centralization of The side chain itself which is referred To as the bore layer The bore layer only has seven to ten Block producers which is why the polygon Pos chain is so fast The block producers on the boar layer Are selected from the larger group of 100 validators on the heimdal layer Which are tasked with occasionally Taking snapshots of the ball layer i.e The side chain itself and submitting These snapshots to the ethereum Blockchain This ensures the sidechain’s security The ethereum blockchain is where the Validators on the polygon pos chain Stake their matic and while there is no Minimum stake to become a polygon Validator to make the cut you must take Enough matic to crack the top 100 which Obviously costs a pretty penny Luckily delegation is possible with no

Minimum stake and staking rewards are Currently around 10 per year for both Validators and delegators Note that there is a 21-day lock-up Period for any staked matic and any Misbehaving validators will see their Matic stake slashed i.e destroyed As you might have guessed the matic Token is used to pay for transaction Fees on the polygon pos chain Transaction fees on the polygon pos Chain cost a fraction of what they do on Ethereum and a portion of all matic used To pay for transaction fees is burned Now the matic token will eventually be Used to pay for transaction fees on Polygons other scaling solutions two of Which are live the first is polygon Hermes which uses zero knowledge proofs And can process around 2000 transactions Per second Polygon hermes can only process simple Transactions for the time being hence Why it only has around 350 000 in total Value locked according to l2 beat The second scaling solution that’s live Is privacy focused polygon nightfall Which also uses zero knowledge proofs And can process around 100 transactions Per second Polygon nightfall was developed in Partnership with accounting firm ernst Young and is oriented towards Institutions

Polygon also has another scaling Solution called polygon edge which is a Developer tool that makes it easy to Create new customizable blockchains this Makes polygon edge analogous to say the Cosmos sdk or polkadot’s substrate Developer toolkit It should come as no surprise then that Polygon’s growth has been exponential And you can find out what the project Was up to earlier this year by watching Our previous update using the link in The description Now it’s been about four months since we Last covered polygon and a lot has Happened since then on the same day that Video went live polygon announced that It had partnered with a subsidiary of Usdc stablecoin issuer circle which Integrated with the polygon id Decentralized identity solution Let’s hope that doesn’t mean we’ll Eventually need to complete kyc to use Stable coins In early april the chicago mercantile Exchange or cne added pricing data for 11 altcoins including polygons matic This is significant because the cme is Used for futures trading by institutions The cme’s addition of pricing data for Matic therefore suggests there is lots Of institutional interest in it Polygon also revealed its green Manifesto committing to making its

Scaling solutions carbon negative by the End of the year they recently achieved The first milestone in this mission by Becoming carbon neutral something Managed by purchasing carbon credits Funny how that works At the end of april polygon announced The launch of supernets complete with a 100 million dollar incentive fund Polygon co-founder mihailo describes Supernets as quote polygon edge networks On steroids that will be able to do Things like leverage the validators on Polygons pos chain for security Polygon also hit a milestone of over 19 000 dapps deployed on the polygon pos Chain and in a recent interview polygon Co-founder gianty noted that there are Now more than 25 000 dapps on the Polygon pos chain In early may polygon added support for Apecoin’s ape token and some of you may Recall that this is around the time that The apecoin community was deciding Whether to migrate to another blockchain Or create its own blockchain due to Ethereum’s high gas fees well in the end They picked polygon Meta also announced that instagram had Begun testing support for nfts on Polygon ethereum solana and flow and Meta recently announced that facebook Has begun testing support for nfts on These blockchains as well

Make no mistake this could be huge for All four crypto projects In mid-may polygon reached out to terror Projects following ust’s epic collapse Asking them if they wanted to build on Ethereum instead lo and behold many Terror projects recently came together To migrate to polygon Polygon also announced the main net beta Launch of polygon nightfall the Aforementioned privacy-preserving Enterprise-oriented ethereum scaling Solution that leverages zero-knowledge Proofs Ave even announced that it had launched Its decentralized social media protocol Dubbed lens protocol on polygon more About rv and its social media Aspirations in the description Anyways in early june polygon announced That liquid staking protocol lido Finance had added support for matic Staking via stakehold making it possible To stake matic and earn yield without Having to lock it up for three weeks Circle also announced in-house support For usdc on polygon something that was Almost certainly a direct response to Usdt issuer tether which did the same Just a couple of weeks previously At the end of june polygon officially Launched polygon id with its first Integration which is of course the Polygon dow

This makes it possible to have a one Identity equals one vote governance Structure instead of a one token equals One vote governance structure More about the polygon dow a little Later Polygon also announced the test net Launch of polygon avail a quote Blockchain built to scale other Blockchains Now polygon avail achieves this by Acting as a sort of decentralized Storage solution for transaction Histories on other blockchains Interestingly enough it uses the same Consensus as polka dot In early july front ends for Decentralized applications on polygon And phantom were hit by a dns hijack in Plain english a hacker was trying to Trick polygon and phantom users into Giving them their crypto on some Websites as far as i know No funds were stolen which is certainly Good news Polygon also announced a partnership With british tech startup nothing to Bring polygon nfts to the nothing phone The nothing phone started being sold Just a couple of weeks ago which is Probably why i couldn’t find any Statistics about how many have made it Off the shelves but i have a feeling It’s a lot

If that wasn’t crazy enough polygon even Managed to secure a partnership with Reddit to launch an nft marketplace for The social media platform’s 500 million Users This was somewhat expected given that Polygon had partnered with reddit Co-founder alexis ohanian late last year For social media stuff In mid-july polygon hosted the green Blockchain summit which had some so we Say interesting guests i mean one of Them unironically wants to eliminate Travel and have everyone explore other Countries in the metaverse Polygon was also selected by disney to Take part in the media company’s digital Accelerator program i suspect this has Something to do with polygons plans to Crowdfund future films using nfts more On that in a moment At the end of july polygon announced That it had successfully completed the World’s first zero knowledge scaling Solution for ethereum that supports Smart contracts If that didn’t give it away this is a Big milestone not just for ethereum but For the entire crypto industry You can learn more about ethereum Scaling solutions and how they work Using the link in the description Anywho despite all of polygons bullish Developments announcements and

Partnerships the matic token has been Hit hard by the crypto bear market and Is down about 50 percent since i last Covered the project in march though it Is starting to show some signs of Recovery Besides said crypto bear market the Matic token has been suppressed by cell Pressure as indicated by the sizeable Increase in its circulating supply over The last few months Since march matic’s supply has increased By around 340 million Assuming an average price of around a Dollar per matic that works out to Around 340 million dollars of cell Pressure and if you’re wondering where All this cell pressure is coming from The answer is most likely the polygon Foundation which has spared no expense In expanding polygons ecosystem What’s odd is that when i checked ether Scan over the weekend the polygon Foundation’s wallet had been emptied of The remaining 340 million or somatic it Held back in march an amount which Corresponds almost exactly to the 340 Million increase in matic circulating Supply since then When i checked etherscan earlier today However i noticed that the polygon Foundation’s wallet had suddenly been Refilled with 1.4 billion matic which Came from an unlabeled wallet address

Very peculiar indeed and it might have To do with something i’ll mention later Now regardless of these on-chain Anomalies it doesn’t change the fact That the polygon foundation has in fact Been spending billions of dollars on Polygons development This money has been coming from the Sales of matic and it’s apparent in the Price action It’s also apparent in matic’s vesting Schedule which is one of the most Aggressive in cryptocurrency As you can see there was a big vesting Cliff in early may and the last vesting Cliff will occur later this year This is when the polygon foundation the Polygon team and matix early investors Will all be able to sell Now for what it’s worth polygon Co-founder sandeep noted in june that The founders still hold quote 85 to 90 Percent of the matic tokens they’ve been Allocated Unfortunately it’s hard to say for sure Because the wallets belonging to the Four founders are not labelled on Etherscan In any case the apparent hoddling of the Founders doesn’t change the fact that The demand formatic has been low as Evidenced by the daily transactions on The polygon pos chain Never mind the near total absence of

Speculative demand thanks to the crypto Bear market What’s more is the total value locked on The polygon pos chain has been stuck at Around 1.7 billion for weeks while the Total value locked on alternative Scaling solutions on ethereum like Arbitrarium and optimism have been on The rise with arbitrary alone having Twice the tvl of the polygon pos chain The silver lining is that matic is Likely to continue its short-term rally Regardless of these fundamentals and That’s simply because of ethereum’s Upcoming transition to proof-of-stake Which is taking tokens like matic on a Mission to the moon Based on my admittedly amateur technical Analysis matic could rally as high as a Dollar fifty in the lead-up to Ethereum’s merge in mid-september This is consistent with eth’s own price Action which is forecasting up to a 2x Increase between now and then This also makes sense because matic will Almost certainly benefit from the merge As it will make its scaling solutions More environmentally friendly by Extension this will increase polygons Already high appeal to institutional Investors something that was actually Noted by sandy in an interview Moreover polygon scaling solutions will Still be needed post-merge because the

Merge won’t affect ethereum’s Transaction speeds or fees by all that Much if at all You can find out how exactly the merge Will affect ethereum using the link in The description Anyhow whether matic can maximize its Full potential ultimately depends on Polygons upcoming milestones although Polygon doesn’t have an official roadmap Upcoming milestones can be found in Interviews with the project’s Co-founders on the project’s website and In the project’s blog posts In march sandeep mentioned in an Interview that polygon wants to partner With media companies to use nfts to Crowdfund films and the project’s recent Tie-in with disney may be the tip of the Iceberg in this regard as sandeep Explicitly mentioned bollywood india’s Version of hollywood In may sandeep and mihailo mentioned in An interview that facebook and instagram Have big plans for crypto nfts and that Polygon is working on creating custom Hardware to run its future scaling Solutions This is a bit scary because it could Create some serious centralization for These scaling Solutions in july gianti mentioned in an Interview that polygon is trying to Become the bridge to bring liquidity aka

Money from the traditional financial System into crypto and some of you might Remember that polygon has pivoted to Focusing more on institutions than Individuals Just recently mihailo mentioned in an Interview that the revolutionary evm Compatible zero knowledge scaling Solution will be live by the end of the Year that the name is still being Decided and that polygon will soon be Renaming and redesigning the matic token To reflect the project’s growing Ecosystem so be on the lookout for that One As for the polygon website if you check The documentation you’ll notice that the Governance section is under construction This suggests that a governance Structure for polygon is in the works Which is not surprising given the dow’s Recent integration with the polygon id The matic token page on the polygon Website also notes one of its use cases As governance specifically quote Matic token holders enjoy special Privileges on the protocol the tokens Can be used for network participation Via governance voting on polygon Improvement proposals pips coming soon On that note a blog post about the Polygon id notes that it will be fully Rolled out during this quarter meaning It will be available to use in other

Dows on ethereum-based blockchains Should they so choose This echoes comments made by sandeep in An interview that this will be the quote Summer of daos you can learn more about The power of crypto daos using the link In the description So this brings me to everyone’s favorite Part and that’s the concerns i have About polygon My first concern is transparency i’m Honestly surprised that there still Isn’t a website for the polygon Foundation nor a breakdown of its sales And i’m even more surprised at all the Unexplained on-chain activity we’ve seen With the foundation’s wallet address Over the last few weeks It would also be nice to know which Wallets belong to the founders given That they hold a significant chunk of Matic supply but i can understand how Some would see that as overreach even in The context of crypto’s culture of Transparency Then there’s the lingering question of What happens to polygon after matic’s Maximum supply is reached in 2025 It’s unlikely that polygons validators Will be sufficiently compensated by Transaction fees alone and that means The only solution is to either change Matic supply or subsidize rewards As it so happens in an faq in one of

Polygon’s recent presentations a member Of the polygon team seemed to imply that The polygon foundation will provide the Matic that validators need to stay Motivated after 2025 and this could Explain the odd transactions to and from The foundation’s wallet This ties into my second concern and That’s regulation As some of you might have seen many Officials in india have been calling for Crypto to be banned India’s one and only crypto lobby group Was also recently shut down which could Mean the crypto industry has little to No influence in the country This suggests that these threats from Indian officials are serious and if you Need more evidence look no further than The correlation between crypto Crackdowns and the rollout of central Bank digital currencies note that india Is looking to roll out its digital rupee Later this year or early next year This is probably why gianty noted in a June interview that he believes a big Regulatory crackdown on crypto is coming And that this crackdown will make the Next two to three years really tough for The crypto market This could hit polygon hard especially If the polygon foundation is also based In india it’s not just india either in An interview with cnbc in may mihailo

Was asked whether polygon technologies Would ever go public i.e issue a stock Mihailo responded by saying that polygon Is already public via the matic token in Other words matic is like a stock in Polygon the company now if you’ve Watched any of our videos about the sec You’ll know that it’s actively cracking Down on crypto projects which have coins Or tokens that are analogous to stocks In the companies that built them This makes mihaelo’s comments extremely Concerning and i wouldn’t be surprised If that analogy peaked the interest of The sec Now funnily enough my third concern Could protect polygon from my second Concern and that’s the project’s Increasingly uncomfortable alignment With esg obsessed institutional Investors and asset managers I won’t get into too much detail for the Sake of time but the short of it is the Polygon id could become dystopian very Quickly even though it’s decentralized Especially if it’s coupled with the Blockchain-based incentive structures That many of polygons investors and even One of its co-founders want to see Put differently it looks like polygons Powerful technologies are at risk of Being co-opted by the enemies of crypto Who seek to use this power to control What people can do where they can go

What they can buy and what they can say More about that in the description Now even with these concerns there’s no Question that polygons adoption has been Nothing short of incredible while the Project seems to face some serious risks I reckon most people would argue that These are far outweighed by the rewards That we could see in the not so distant Future that’s why i hold matic as part Of my portfolio and why i might just Accumulate some more before matic really Starts to moon and i’ll certainly be Accumulating more once this recovery Rally ends and the real crypto bear Market bottoms begin More about that in the description And that is all for today’s polygon Update so if you enjoyed it smash that Like button to let me know if you want To make sure you don’t miss my next Crypto update subscribe to the channel And ping that notification bell In the meantime you can check out coin Bureau clips for more crypto content and Check out the coin bureau podcast for Some quality crypto conversations you Can also follow me on twitter instagram And telegram and get your daily dose of Crypto updates by joining my telegram If you want to know what other cryptos i Hold besides matic you can subscribe to My weekly newsletter to find out If you want to support the channel head

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