Investors no longer find Polygon appealing, but there are two factors that might make this cryptocurrency very popular again.
Although Polygon (MATIC -2.34%) has lost over 25% of its value this year, there have been some recent indications that the cryptocurrency token is beginning to show signs of life.
For instance, Polygon’s stock has increased by 12% since September 28 following a roughly 67% decline from February to September.
But Polygon still has a ways to go before hitting $1 again. For Polygon to make up for its current price of around $0.56, it would need to almost treble. The good news is that Polygon may rise as a result of two factors.
Is Polygon Going to Hit $1? The Fool Motley,Is Polygon Going to Hit $1? The Fool Motley
The environment of Polygon is growing.
Most significantly, based on the quantity of users, developers, and partners it has, Polygon is still expanding its ecosystem. For instance, Alphabet’s cloud computing division, Google Cloud, joined the Polygon proof-of-stake network as a validator in September.
Put simply, this implies that Google Cloud will contribute to bettering overall blockchain governance and securing the blockchain network. One may see Google Cloud’s decision to join the network as an official validator as a mark of endorsement for Polygon.
In contrast, Polygon continues to rank among the top blockchains in terms of the amount of non-fungible tokens (NFTs) sold. Polygon continues to be ranked among the top five blockchains for the most recent 30-day period, citing the most current CryptoSlam NFT statistics.
In terms of NFT initiatives, Polygon is also winning a lot of clients. Over the last 30 days, two of the largest companies to debut on the Polygon blockchain are Casio and Lufthansa.
Furthermore, Polygon stands out as the No. 5 blockchain with around $800 million in total value locked (TVL), which quantifies how much of a cryptocurrency token is “locked” on the blockchain. In light of the fact that this statistic can be used to gauge public confidence in a blockchain, Polygon is still relevant despite recent market turmoil.
Make the switch to Polygon 2.0
Although the ecosystem is expanding at a phenomenal rate, Polygon 2.0, the cryptocurrency’s new approach, is the one that has the potential to truly unleash Polygon’s worth. Of course, detractors may see this as simply another clever marketing ploy from a cryptocurrency that is urgently attempting to find its old charm.
However, if you look more closely at the most recent suggestions for Polygon blockchain enhancements, this tactic may result in a thorough reorganisation of Polygon’s blockchain architecture.
While there is plenty to analyse, the most significant shift is that Polygon now intends to serve as a Layer-2 scaling solution for other blockchains in addition to Ethereum (ETH -0.53%), rather than only speeding up and improving Ethereum.
Second, by developing a whole new “staking layer” for the blockchain, Polygon intends to solve certain potential regulatory problems with cryptocurrency staking. Lastly, Polygon intends to strengthen its reliance on its cutting-edge proprietary technology, dubbed “zero-knowledge” or “ZK,” in order to consolidate and validate blockchain transactions.
All three of these adjustments may be the catalyst for Polygon’s upcoming significant expansion. The possibility to capitalise on the expansion occurring on blockchains other than Ethereum really excites me. This makes sense given how busy Ethereum’s Layer-2 niche is become.
Is Polygon Going to Hit $1? The Fool Motley,Is Polygon Going to Hit $1? The Fool Motley,Is Polygon Going to Hit $1? The Fool Motley