3 Reasons Why You Should Invest in Polygon (MATIC) in 2022.

3 Reasons Why You Should Invest in Polygon (MATIC) in 2022.

Technology
May 21, 2022 by
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Are you still thinking of investing in $MATIC? Read this now. Polygon MATIC to the moon? TL;DR 1. Polygon has significantly diversified its product range from Proof-of-Stake (PoS) Scaling solutions to a suite of ecosystem that focuses on different scaling solutions for Ethereum in recent years. 2. Polygon’s strategic partnerships with major players in the crypto space such
3 Reasons Why You Should Invest in Polygon (MATIC) in 2022.

Are you still thinking of investing in $MATIC? Read this now.

Polygon MATIC to the moon?

TL;DR

1. Polygon has significantly diversified its product range from Proof-of-Stake (PoS) Scaling solutions to a suite of ecosystem that focuses on different scaling solutions for Ethereum in recent years.
2. Polygon’s strategic partnerships with major players in the crypto space such as Venture Capital firm Sequoia Capital India, SoftBank and one of the Big four accounting firm Ernst & Young.
3. Polygon becomes deflationary with the Ethereum Improvement Protocol 1559 (EIP-1559). Polygon’s supply is capped at 10 billion, while the proposal will help to ‘burn’ its supply. By basic economics of demand and supply, it will cause an upward pressure in MATIC’s price in the future.

What is Polygon (MATIC)?

Polygon (or the MATIC token) needs no introduction for many as it is such a prominent and important project in the crypto world. But for the benefit of some, let me run you through the background of Polygon.

Polygon is developed as a scaling solution for the Ethereum chain, launched in 2017 as Matic Network. Polygon was co-founded by a team of developers in India to address the two main limitations of the Ethereum network — low throughput and high gas fees. MATIC uses a Proof of Stake (PoS) consensus mechanism to secure its network that runs in parallel to the Ethereum network. MATIC is the native token used for staking and for governance and it is traded on all major exchanges like Binance and Coinbase.

Why Should You Invest in Polygon MATIC in 2022?

There is no denying that the whole crypto market is down, and we are likely already in a bear market. However, we should always remain vigilant and indifferent in times like this. As Warren Buffet once said ‘Be greedy when others are fearful…’

If you are still new to the Polygon ecosystem or you’re on the fence on whether or not to put hard earned money into this project. Here are 3 reasons to consider investing in Polygon in 2022.

Reason 1: Polygon is no longer just a faster platform for Ethereum as the network has expanded to a multi-chain ecosystem of different scaling solutions.

An overview of current suite of scaling solutions provided my Polygon adapted from Polygon’s website.

Besides Polygon PoS scaling solution, the network has diversified to offer much more. For example, Polygon Hermez, Nightfall and Avail will focus on payments, data and enterprise scaling solutions. With the merge of Ethereum 2.0, transaction speed on Ethereum will see a sharp increase from 15 transactions per second (tps) to 100,000 tps at its maximum load. Polygon’s expansion to offer a multi-dimensional scaling platform will be a hedge against reliance on Ethereum’s slow transaction speed. Consequently, this will also drive further adoption of Polygon in the future, therefore, pushing the usage of MATIC tokens.

Reason 2: Polygon’s strategic partnerships with major players in the crypto space and is a bullish catalyst for the MATIC ecosystem and a safeguard for its future

News adapted from Polygon’s official blog page.

In Q1 of 2022, Polygon managed to raise a $450m from 40 VC firms including Sequoia Capital India and SoftBank Vision Fund 2 to scale Ethereum and fund Web3 development and Web 3 applications. This is also one of the largest funding to a crypto currency firm in the recent years, which proved to show the growing investor confidence on the project. Polygon also announced its partnership with Ernst & Young (EY) to jointly develop and implement enterprise solutions. These are largely positive developments because a mass adoption of Polygon and Ethereum would also require the usage and adoption from businesses, to legitimise crypto assets like MATIC.

Reason 3: Polygon becomes deflationary with the implementation of Ethereum Improvement Proposal 1559 (EIP-1559).

MATIC Token Live Burn count Dashboard adapted from Polygon Burn website.

This update to the Polygon network brings about the elimination of auctions as the primary method of determining fees. Instead, a basic charge is implemented, and a priority fee is used to expedite processing the block. The base fee is then burnt upon each successful transaction. As MATIC token has a supply cap of 10 billion, any reduction of token will have a deflationary effect. According to calculations by Dune Analytics, roughly about 0.29% of MATIC token will be burnt each year. By basic economics of supply and demand, there will be a upward pressure of the price of MATIC in the future if the adoption of Ethereum continues to grow.

Concluding thoughts?

Should you use your entire savings to buy MATIC token now? No, absolutely not! At the time of writing, MATIC token has dropped close to 70% from its all time high price at about $2.80 per token to under a dollar. This itself may be a good buying opportunity. However, I always believe in Dollar Cost Averaging (DCA) into any form of assets.

Technical analysis of MATIC/USDT pair dropping more than 65% from all time high prices.

I would not encourage anyone to go ‘all in’ and risk catching a falling knife. Again, always DCA. In the long term, Polygon certainly has a bright future ahead. If you are looking to invest in the long term, Polygon’s MATIC token may be something you could consider.

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Disclaimer: I am not in any way a financial advisor. Always DYOR and stay safe!

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3 Reasons Why You Should Invest in Polygon (MATIC) in 2022. was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.

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