Polygon (MATIC) started with the aim of solving Ethereum's scaling problems. The project, originally known as Matic Network, initially functioned as a sidechain of Ethereum. In the meantime, Polygon has grown into a large network that offers various scaling solutions. The native MATIC token has become one of the largest cryptocurrencies around. This is just one reason why we have listed MATIC.
With solutions to Ethereums most pressing problems – high fees, poor user experience and low transaction throughput – Polygon has established itself in the crypto space and now ranks 10th among all cryptocurrencies by market cap with its MATIC token.
Polygon calls itself the “Internet of Blockchains”. It serves as a multi-chain network for Ethereum-compatible blockchains. It is Polygon's goal to enable communication between different blockchains. Developers should have the possibility to build dApps on Polygon in the simplest way.
Matic Network becomes Polygon
Founded in India in 2017, the MATIC Network originally started as a layer 2 scaling solution, aiming to make Ethereum faster, cheaper and more scalable. The focus of the MATIC Network was on plasma chains. Plasma Chains are something similar to sidechains. They are anchored as separate blockchains in the Ethereum mainnet, but have their own mechanism for block validation and conduct transactions off-chain.
As the project expanded, the MATIC Network became Polygon - the new home for multiple projects, including the Matic Network. Alongside Ethereum, the Binance Smart Chain and Tron, Polygon is now one of the largest projects in the DeFi sector. Currently, there are more than 340 protocols running on the Polygon blockchain.
Compared to other second layer solutions, Polygon has a much larger ecosystem and offers developers a wide variety of options for building applications. This flexibility differentiates the network from projects like Arbitrum or Optimism, which only focus on one layer 2 construction. In September 2021, Polygon even had more daily active users than Ethereum for a short time.
Large brands and renowned companies from sports, fashion, technology and finance are adopting Polygon as their blockchain of choice: Disney has appointed Polygon as a partner in its Accelerator programme to get support for its Web 3.0 ambitions. Adidas and Prada collaborated with Polygon Studios to implement their joint metaverse project on the Polygon network. Meta announced Instagram would be using the Polygon network for its upcoming in-app NFT minting feature.
Further, Polygon’s efficiency has enabled Reddit’s Avatar NFTs to see mass adoption and JPMorgan, one of the world's largest banks, executed its first DeFi transaction through the Polygon platform. Announcements of the latest high-profile partnerships gave the MATIC token a decent boost in November: The price surged about 30% in two days from $0.84 to $1.10.
Sustainability in Web 3.0 and beyond
The Polygon team believes that the transformative technology of Web 3.0 can provide solutions to our most pressing climate problems. In their Green Manifesto they describe how Polygon is eliminating all of the network’s carbon debt going back to inception and then going carbon negative in 2022. Every transaction – an NFT minted by an artist, a DeFi trade, a token bridged to a project building on the Polygon network – is to be accounted for and its environmental impact is offset. When this goal is achieved, Polygon aims to become the first blockchain that is climate positive. Polygon's efforts towards CO2 neutrality are likely to be viewed positively by potential partners and institutional investors.
MATIC – the native currency of Polygon
Polygon's own cryptocurrency MATIC is used to pay fees on the Polygon network, to secure the network by staking and for governance, which means token holders get to vote on changes to Polygon. It's the currency of Polygon apps that enables users to interact with hundreds of dApps involved in the ecosystem.
MATIC had its all-time high on 27 December 2021 with $2.92 and its all-time low on 9 May 2019 with $0.003012. The coin currently costs $0.9251 as of 9 December 2022. You can trade MATIC on the SMART VALOR platform with Bitcoin (BTC), Ethereum (ETH), Tether (USDT) and all five available fiat currencies: EUR, CHF, GBP, USD and SEK.
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