The past year has been a painful one for crypto investors. This altcoin becomes the preferred MVP of investors in the new year.
This altcoin took advantage of the market
The past year has been a painful one for crypto investors. cryptocoin.com As we mentioned earlier, the asset class reached an all-time high in November 2021, exceeding nearly $3 trillion. However, it has since lost about 70% of its value. Some sort of correction was probably inevitable after the massive cryptocurrency run continued in 2020 and 2021. However, this correction was made worse by a series of controversial events that caused many investors to lose faith in the industry. Yet despite numerous bankruptcies, mass layoffs, and some cryptocurrencies becoming completely worthless, not all of 2022 has been apocalyptic and bleak. To the surprise of some, one cryptocurrency has had a phenomenal year of success.
Polygon (MATIC) deserved to be the crypto MVP of 2022, although its price may not reflect its level of success, possibly as a result of ongoing macroeconomic factors. Despite its high price, it has remained resilient compared to other cryptocurrencies. It has fallen by about 70% since the last year. While this price may sound like bad news to investors, Polygon’s market cap has jumped to the top 10 market caps of all cryptocurrencies in the middle of the crypto winter. But for Polygon to remain resilient, investors must have reason to be optimistic that the blockchain is getting more valuable, and the list of reasons is long.
Anecdotally, the number of partnerships Polygon has made with companies this year may be the highest of any cryptocurrency. They all used Polygon a little differently, but this demonstrates blockchain’s versatility in serving a variety of needs for companies looking for unique ways to use blockchain technology for new applications.
Polygon’s list of companies that have started using it for things like NFTs and decentralized financial transactions continues with Nike, Disney, Meta, Coca-Cola, JPMorgan, and Starbucks. More importantly, however, is the reason why these companies decided on Polygon as the blockchain of choice to begin their blockchain efforts. Polygon does one particular thing very well. What it does is make Ethereum (ETH) faster and cheaper to use.
A symbiotic partnership
In the last few years, Ethereum has emerged as one of the most popular blockchains. It is used to program smart contracts, decentralized applications, NFTs, lending protocols and much more. Due to its usage range, Ethereum is sometimes congested with traffic. As traffic on the blockchain increases, speeds may slow down and the costs of finalizing transactions may increase. But with Polygon, that’s all in the past. Ethereum is popular not only for its smart contracts and wide-ranging use cases, but also for its security and decentralization. Companies like the ones mentioned want to use Ethereum, but that can get a bit costly. They can mitigate this by using Polygon, which processes transactions in packets rather than one at a time and then adds them to the Ethereum blockchain much cheaper.
These companies that use Polygon more are using it because of its compatibility with Ethereum. Thus, this altcoin has become the most suitable option for companies that want a more cost-effective blockchain but still seek the benefits of Ethereum’s popularity, decentralization and security.