Scalability issues and resistant blockchain networks are the impediments to enabling mass adoption. Ethereum has been scrutinized as early as 2017 when Cryptokitties clogged the network. As a result, sequencing in the blockchain space has operated to enhance network capabilities and provide faster and effortless integration solutions for mass audiences.
Matic Network – recently rebranded into Polygon, has hit the headlines in the previous days as it related positively to the market. Despite Bitcoin and other dino coins losing ground to the market makers, Polygon positively projected itself onto the market. Additionally, Polygon traded positively against both Bitcoin and Ethereum amind the massive sell-off on May 18th, reaching a market capitalization of over $14 billion and ranking on the 14th spot.
Polygon – A Layer 2 Solution
The central locus of blockchain technology surrounds interoperability and scalability issues and concerns. Faster and cheaper transactions facilitated by Polygon’s side chain architecture generate a much-anticipated hype in both price and public perception. In contrast, Polygon’s surge as a viable solution comes from latent transaction times and higher transaction fees on Ethereum.
According to data from DappRadar, the Polygon network drew over 75,000 new users in the past 7 days, with data indicating activity related to wallet interactions on the network. What’s more, Polygon’s growth is synonymous with the growing demand for layer two scalability solutions, a facilitator for DeFi projects across the blockchain spectrum.
Polygon’s focus is on DeFi platforms that account for 64 total dApps out of 91 existent operating on the network. What’s more, the number of dApps on Polygon has increased from 64 to 91 in the past 4 weeks, with platforms such as QuickSwap or AAVE leading the way as staples in the growing ecosystem. Thus, side-chain interaction creates a natural interaction with the network, mimicking off-chain trading solutions.
Only 6% of current Polygon holders have held the token for more than one year, signaling a shift between network preferences. Additionally, with the growth of meme coins and BSC and Ethereum showing signs of congestion and high fees, Polygon is an obvious solution. As a scalable alternative solution to Ethereum, the network incentivizes easier adoption through “faster” SDK frameworks to enhance market adoption.
On the Flipside
- The negative market sentiment could spiral into a blockchain downtrend that will be detrimental for Polygon’s short-term progression.
- Projects such as PolkaDot or Cosmos could overcome Polygon once their network is fully operational.
- The low entry barrier could spur another BSC or Meme Coin mania in the blockchain world.
What’s Next For Matic
Matic has registered a growth of over 12.000% since the start of 2021. Its layer 2 framework that’s built to cater to lackluster in existing offerings creates market demand as it’s reflected in the $1 billion in trading volume, which amounted despite the downward market sentiment.
Web 3.0. is a growing necessity that can succeed if blockchain adoption and scalability can reach a satisfactory level for the mass audience. PolkaDot or Cosmos’s interaction with Layer 2 solutions through para chains in PolkaDot is yet to be active. However, such immersive dedication towards enabling a framework for development adds hope to Polygon developers.
The addition of Polygon on the Kraken exchange is only but the first signal of market understanding of the necessity of a scalable blockchain. Not only that, but creating an interoperable system will break the blockchain entry barrier as it will no longer be dependent on individual network entities. While the roadmap is not highlighting their focus as a possible first-mover advantage, Polygon could leverage their name from a strategical and technological standpoint. Recently, Polygon partnered with Mogul Productions, Umbria or Atari, add a step ahead of the competition.