Matic coin review: How it’s recovering from the crypto crash
High growth isn’t unheard of in the crypto world, but once you start talking about returns of over 5000% in a matter of months, it’s time to start paying attention. That’s exactly what Matic coin has achieved so far in 2021 – but is it on its way to solving Ethereum’s problems and growing further? Let’s answer this question and more.
Matic coin is the native token of Polygon, a rapidly expanding network aiming to be a one-stop shop for Ethereum. Think multiple applications and blockchains, all in one place. Given the platform’s growth spurt throughout 2021 (how does an increase of 5844% in under a year sound?), there’s plenty of intrigue around the once-obscure cryptocurrency.
But is it worth investing in? We can’t answer that for you, but we can certainly delve into the finer details of matic coin, along with its price history, background, and potential future prospects. Let’s go!
Matic coin price
When matic coin was first launched back in May 2019, it failed to make much impact – the price lingered around the $0.02 mark right until the end of 2020. But despite the slow start, it’s more than made up for lost time.
It finally started to make serious upwards movements thanks to the all-round crypto rush in 2021, jumping from $0.018 at the start of the year to $1.07 around August (according to figures from CoinGecko). That’s an increase of 5844% – and we’ve not even touched on the coin’s all-time high earlier this year.
Matic coin reached $2.45 in May 2021, which is almost double the already impressive August value.
Unfortunately, just as matic coin benefitted from the crypto boom in May, it was also affected by the fall shortly after. The token returned closer to its value earlier in the year, and since June 2021, it’s hovered around the $1 mark.
Yet there’s good news – whereas other cryptocurrencies have struggled to rebound from the crash, Polygon appears to be recovering.
If you’re still wondering , “should I buy matic coin?” then hold on for a minute. Before you make your move, make sure you have a detailed understanding of the network’s features and aims.
Matic coin history
If you’re wondering why a crypto network called Polygon has a native token with the completely unrelated name matic coin, there’s a simple answer: it used to be called the Matic Network.
Launched in 2017 in India, the platform focused on improving the scalability and usability of Ethereum (which have always been major issues).
Then, early in 2021, Matic Network became Polygon – and shortly after, it began to really take off.
Why? We’d put our money on the technology upgrade. When the Matic Network was first launched, it simply processed transactions “off-chain” then finalized them on Ethereum, whereas Polygon hosts a range of interconnected blockchains. This gives it far more flexibility and scalability potential.
We’ll go more into how this new technology works later, but for now, let’s focus on why Polygon’s value proposition is so important.
How Polygon helps to overcome ethereum’s issues
Ethereum might be one of the world’s best-known cryptocurrencies, but that doesn’t mean it’s perfect. The network has always faced challenges with transaction speeds since it needs to handle large amounts of data, resulting in higher fees and a poor user experience.
Polygon’s founders saw another way. They got around the problem using proof of stake sidechains (independent blockchains that work with another blockchain) to harness the power of Ethereum while overcoming the problems outlined above. Every sidechain adds more capacity to the original network, therefore speeding up transactions and decreasing costs.
Polygon also aims to make life easier for the developers of decentralized applications (dApps) by letting them use features of various blockchains to build their apps on, giving increased functionality and flexibility.
As for matic coin itself, the token plays a key role in the network by aiding governance (token holders can vote) and letting you pay fees or stake the coin to earn interest.
Got that? Good – it’s time to move onto some even more technical details.
The Polygon network – rapid expansion and layers
We’ve already taken a brief look at how Polygon uses sidechains to overcome the core problems of Ethereum, but we’re about to go even deeper. What really makes Polygon special is its use of layers.
Essentially, Polygon uses a four-layer system:
- Ethereum layer (optional): Contains smart contracts for communication between Ethereum and other blockchains.
- Security layer (optional): Adds an additional validation method to the chains.
- Polygon networks layer: For the blockchain networks built on Polygon itself.
- Execution layer: Host Polygon’s Ethereum Virtual Machine (EVM) for developers to build dApps.
All these layers and chains work together and communicate with each other. The end goal? For Polygon to be a gateway to Ethereum by allowing other networks to connect with it and for dApps to use it (without the usual problems associated with Ethereum). Talk about scalability!
But the most exciting thing about Polygon is that it’s constantly expanding – as more layers are added, the platform becomes even more versatile and useful. New features are always being introduced to allow for a diverse range of applications; for instance, popular Ethereum apps like Aave and SushiSwap are already working on Polygon.
Matic coin review
By now, you should know what matic coin is and its recent price history. But does all that mean it’s a promising cryptocurrency – or just yet another coin trying to be the “next big thing”?
It’s worth noting that Matic network isn’t the only Ethereum scaling project – there are also alternatives like Polkadot. Polygon immediately stood out for being user-friendly and having an extremely well-made structure, but its creators shouldn’t get too comfortable.
And it’s not just other similar projects that Polygon has to contend with – there’s also Ethereum itself. As developers work on building Ethereum 2.0 to fix the network’s scalability problem, the need for solutions like Polygon might disappear completely.
With such a varied price history so far, it’s tough to forecast matic coin’s future. But it can’t be denied that Polygon’s interconnected, layered solution has a lot to offer the world of decentralized finance – and it’s also attracted a fair amount of attention so far, with new apps and features being added all the time.
If that’s enough for you to decide you want to keep an eye on this one, you might be wondering how to buy matic coin. Luckily, the cryptocurrency is available on a range of major exchanges, including Binance and Coinbase.
You can then transfer your investment to your Matic wallet from Polygon, or a third-party option like the MyConstant multi-cryptocurrency wallet. Or why not try something slightly different?
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