What to Expect From MATIC in 2023?
Ethereum is famous for its problems with slow transactions and high gas charges. Many crypto projects were created to fix this problem, and Polygon is among them.
The platform launched in 2019 to improve Ethereum’s issues. However, it quickly started attracting the attention of users worldwide. Today, many are swapping their crypto coins for Polygon coins. But before you visit an XMR to MATIC exchange, it can’t hurt to learn more about this token. Here are its basics and what to expect from it in the future.
What Is MATIC?
MATIC is a token that powers the Polygon platform. It kept its name from 2019 when Polygon was launched as the Matic network. The token is an ERC-20 coin that runs on the Ethereum blockchain.
The platform releases MATIC tokens monthly, and about 93% of coins are in circulation. The maximum supply is ten billion. As for the market cap, it’s currently around $6 billion. That puts MATIC in the top 15 cryptocurrencies in the overall rankings.
How Does Polygon Work?
It’s time to learn more about the native network of the MATIC coin. Here are the important details about Polygon and its connections to Ethereum.
Layer 2 Solution
Layer-1 blockchain is the core structure of a decentralized crypto network. You can create layer-2 blockchains on top or alongside these blockchains. Polygon belongs to layer-2 blockchains, and its base blockchain is Ethereum.
Layer-2 solutions have a purpose to improve or expand the capabilities of the base network. Polygon does that by using the decentralization and security of the Ethereum blockchain. At the same time, it deals with its scalability issues. As a result, the transactions are faster, and the fees you pay are lower.
Sidechains and PoS
Polygon is based on the so-called sidechains. These are independent blockchains that function adjacently to the mainnet. They connect to the main chain by using a two-way bridge. Polygon has two bridges used to communicate with Ethereum — Plasma and PoS.
Plasma relies on the security of the Ethereum network. The PoS is a proof-of-stake consensus mechanism. The goal of Polygon using the PoS is to decrease energy consumption and secure faster transactions.
DApp Development
Polygon is developer-friendly because it supports the same tools as Ethereum. You can use Remix, Truffle, and MetaMask to create decentralized apps. The process is identical to the Ethereum network, so there’s nothing new to learn to build and deploy dApps.
From a developer’s point of view, it’s great that they can work with familiar tools. Apart from the main characteristics of the Polygon network, that’s probably the main reason for the popularity of this blockchain.
Use Cases
Polygon has a rich ecosystem with numerous apps in different categories. DeFi apps like Celer cBridge, Instadapp, and Rediant Finance are worth checking out. Games like the Soccer Arena and Black Eye Galaxy, as well as social apps like SoulPrime and Ylide Social Hub, are also on this network.
NFT apps like Project Galaxy, Crucible, and NFT Multisender are on the Polygon network. Cwallet, Coinstats, and Educoin are some great utility apps that are also a part of this ecosystem. MATIC is also used to pay gas fees for transactions on this blockchain.
MATIC Price Prediction
A single MATIC coin is now worth $0.6. If we look at short-term predictions, the majority agrees its value will rise before 2023 ends. Some warn the value could drop to $0.57, but most experts place its worth at around $0.82. Those who are optimistic believe it could reach $1.3 in these few months, while the best forecasts place MATIC at around $2.07.
MATIC price prediction for the upcoming years is also positive, but the estimations vary significantly. For 2024, MATIC is predicted to be anywhere from $1.15 to $2.65. And in 2025, most experts agree the coin would go over $1.5, and some even put it above $3.
Conclusion
Polygon is the most popular scaling solution for the Ethereum network, and it’s hard to see anyone throwing it from the top anytime soon. MATIC price forecasts are encouraging and the odds are the coin will only gain value in the long run.
That’s why acquiring MATIC now is the right move, so don’t hesitate to find a crypto trading platform and add it to your portfolio!
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