What is Polygon (MATIC), why this Disney preferred blockchain up 60%?
Polygon (MATIC) token soared 60% last week thanks to the multiple factors that put this Ethereum blockchain in the spotlight of crypto market participants.
The short-term bounce that the crypto market is experiencing, just days before the highly important meetings of the market with Europe and the U.S. central banks, is unveiling a little-known protagonist for most crypto investors. Last week, the MATIC token of the blockchain Polygon gained 60% thanks to the multiple factors that put it in the spotlight of market participants.
With a price hovering around $0.90, the Ethereum layer two blockchain ‘altcoin’ is not even among CoinMarketCap’s top 10 tokens by market capitalization. Its current value is still far from its all-time high of nearly $3 last December, but experts believe its bull run is targeting a minimum of $1 due to the remarkable attention Polygon is receiving.
The Polygon network (used known as Matic network) is a protocol to increase the scalability of the Ethereum blockchain and add new use cases. Polygon works through a sidechain that connects to Ethereum allowing for further processing, they explained from ‘Blockchain Observatory’. “It is arguably everything Ethereum aims to be with Ethereum 2.0,” they pointed out. “It is a project that corrects Ethereum’s processing capacity problems. It also uses the proof-of-stake model as a consensus mechanism. Polygon offers a much more intuitive architecture for developers, making it a more attractive network for inexperienced users,” they added.
“MATIC polarizes opinions in the cryptocurrency market, but its level of adoption is unquestionable,” stated Nick Heale, an analyst at GlobalBlock. He stressed that the blockchain “benefited from the unfortunate demise of Terra Luna by attracting various projects to it”. Polygon studios CEO Ryan Watt confirmed in a tweet that 50 cryptocurrency projects migrated to Polygon from Terra. The total value locked in Polygon stands at around $1.76 billion.
The network released data suggesting the network’s growth among other dApps (decentralized applications). This week alone, Good Ghosting and Slingshot entered the top-20 best performing dApps.
It also recently announced a deal with social forum Reddit, which allows users to purchase blockchain-based avatars in non-fungible token (NFT) format for their profile. It partnered with Flipkart Firedrops in the NFT arena.
Because of all this, analysts have drawn very good forecasts for Polygon (MATIC), but the icing on the cake was provided by Disney, as the ‘blockchain’ has been chosen to participate in the prestigious accelerator program of ‘House of Mouse’. The exclusive accelerator program was open to “venture capital-backed growth-stage companies with a vision to make an impact on the future of technology and entertainment.” Disney revealed that this year it will focus on use cases involving technologies such as artificial intelligence (AI), augmented reality (AR) and non-fungible tokens (NFTs).
The last reason experts used to explain the MATIC boom was the recovery of the overall market and the good sentiment around Ethereum Merge upgrade, which is set for September. The total market capitalization of cryptocurrencies is now back to about $1 trillion.