2023-07-03
1. It has real adoption.
Polygon has 3 different blockchains.
#1 Polygon formerly known as the Matic Network.
Its own layer 1 blockchain formerly called the Matic Network. It has MATIC as a
native token. Matic Network was launched in 2017. Developers can build dApps
and NFTs using MATIC as a means of payment. It is EVM compatible. There are
many DeFi platforms and NFTs on Polygon blockchain such as AAVE and Quickswap.
Its time to finality is 2-3 seconds and
can handle 7,000 TPS. Polygon currently has $972 million total value locked. Many
well-known DeFi platforms such as Aave, Curve, Uniswap, and Compound support
Polygon.
#2 Polygon sidechain also knowns as
Polygon PoS.
Polygon sidechain also known as Polygon PoS. It helps Ethereum solve
scalability problem. Ethereum transactions can process on Polygon sidechain and
bridge back to Ethereum mainnet which lower transaction costs.
Validators need to stake MATIC in order to operate the sidechain.
Those validators earn fees in the form of MATIC.
#3 Polygon zkEVM
It is EVM compatible and developers can
bring dApps from Ethereum to Polygon zkEVM. Users can bridge ETH from Polygon
zkEVM to Ethereum mainnet. It is similar to Arbitrum, Optimism, and zkSync Era.
As of July 3, 2023. Polygon zkEVM has
$28.2 million total value locked. Quickswap, PancakeSwap, Balancer, and
SushiSwap are now support Polygon zkEVM.
Details about Polygon blockchain.
-Time to finality: 2-3 seconds.
-Transaction fees: $0.00022.
-Polygon transactions
per second: 7,000 TPS .
-Max supply: 10,000,000,000 MATIC
-Fully diluted
market cap: $6.86 billion.
As of July 3,
2023.
2. MATIC has better use cases than ARB
and OP.
-MATIC uses for paying transaction fees
in layer 1 network and sidechain.
-MATIC uses for staking to become
validators for both layer 1 and sidechain. Whereas, ARB and OP are governance
tokens.
-MATIC price is cheaper than ARB and
almost 2 times more expensive than OP. MATIC is the best choice if you want to
have exposure in layer 2 tokens.
-MATIC holders can stake the tokens.
MATIC staking has 4.3% APY. 
3. Polygon has strong ecosystem
Ecosystem
DeFi
- Polygon currently has $839 million
total value locked.
- Aave
-Quickswap
- LidoDAO
- Maker
- Compound
NFTs
-OpenSea NFT Marketplace
-MagicEden NFT Marketplace
-y00ts
-Trump Digital Trading Cards
Gaming
-The Sandbox
-Decentraland
Payment
-MetaMask
Competitors
Investors have other choices that have similar
upside when compare to Polygon. Polygon layer 1 process transactions a little
slower than AVAX and Solana.
1. Avalanche
Fully diluted market cap: $9.56 billion.
Total value locked: $704 million.
Price
prediction: 5X return in the next bull market.
2. Optimism
Fully diluted market cap: $5.82 billion.
Total value locked: $842 million.
Price prediction: 3X return in the next
bull market.
3. Solana
Fully diluted market cap: $10.70 billion
Total value locked: $271 million.
Price prediction: 5X return in the next
bull market.
4. Arbitrum
Fully diluted market cap: $11.69 billion.
Total value locked: $2.18 billion.
ARB is overvalued. It has higher
valuation than MATIC.
Price prediction: 2X return in the next
bull market.
Polygon Price Prediction
If you want to invest in layer 2
tokens. MATIC is the best choice. MATIC uses for paying transactions fees on
the sidechain and uses for staking. MATIC has a better use case when compare to
ARB or OP tokens. MATIC can store value much better than ARB and OP.
Due to its technology and adoption
MATIC will perform well in the next bull market. We can expect about 7X return
from MATIC in the next bull market.
Polygon has the tendency not to win in
layer 1 competition as it facing fierce competition from other layer 1 platforms
such as Solana, and Avalanche.
On the other hand, Polygon has the
tendency to win in layer 2 space. Polygon only has 3 major competitors for
layer 2 including Arbitrum, Optimism, and zkSync Era. The price of MATIC should
be on par with Solana. Expected valuation in the next bull market is $50
billion.
