In the last 24 hours, the price of Polygon (also known as MATIC on the cryptocurrency market) has risen by approximately 9%. According to CoinMarketCap, which tracks cryptocurrency prices, the value of the cryptocurrency increased while the value of all others ranked among the world’s 15 largest cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin, fell during the same time period.
MATIC is the cryptocurrency that drives the Polygon network, which provides a framework for creating and connecting blockchains (a record of transactions) powered by Ethereum technology. By market cap value (the total market value of a cryptocurrency’s circulating supply), Ethereum is currently the world’s second largest cryptocurrency. Polygon is currently ranked 14th in terms of market capitalization value among the world’s largest cryptocurrencies.
The price of Polygon was recorded as reaching as high as $2.46 at one point on Wednesday morning. That price surpassed the all-time high set a day earlier when it reached $2.18, following a 25 percent price increase in six hours. Its trading volume increased by approximately 122 percent in the last 24 hours. Polygon’s price began to rise in early February before leveling off in mid-March. Its value began to rise sharply in late April.
The Polygon network’s main chain is Ethereum, and it aims to be a hub into which different blockchains can be easily plugged. It aims to provide a more affordable, secure, and streamlined solution for Ethereum blockchain transactions. The network serves as a secondary blockchain to the main Ethereum blockchain. The MATIC token is used on the Polygon side chain to pay transaction fees and in other capacities.
“Polygon solves blockchain pain points, such as high gas fees [the cost of carrying out transactions on an Ethereum blockchain] and slow speeds, without sacrificing security,” the company website explains. Polygon’s long-term goal is to create a “open, borderless world” in which “people and machines collaborate and exchange value globally and freely, without gatekeepers or intermediaries,” according to the company.
Polygon was founded in 2017 as the Matic Network by three Indians: Jaynti Kanani, the CEO (a blockchain engineer); Sandeep Nailwal, the COO (a blockchain programmer and entrepreneur); and Anurag Arjun, the CPO. In February of this year, the company rebranded to its current name, Polygon, which Nailwal believes helped the Indian startup stand out in an industry dominated by Western companies.
According to Nailwal “Western projects command a premium. To get people’s attention, we have to work five times harder. However, once we rebranded, hired more people, and established a global team, people began to take notice.”
Polygon’s technology has also been used in a number of other projects, most recently YFDAI Finance, a “decentralized finance ecosystem of products and services.” It used Polygon to “reduce transaction gas fees while improving scalability, interoperability, and user experience for its user base,” according to a statement issued on May 14.
Between January and May, the number of apps built on Polygon was reported to have increased eightfold to nearly 400. “We want to establish India as a blockchain powerhouse,” Nailwal said, adding that the company’s goal is to become the world’s third-most valuable crypto project after Bitcoin and Ethereum.
Users should be aware of the risks associated with cryptocurrency investments that are not backed by a government. “Cryptocurrency accounts are not insured by a government like US dollars deposited into a bank account,” according to the US Federal Trade Commission. If you store cryptocurrency with a third-party company and the company goes out of business or is hacked, the government is under no obligation to intervene and help you recover your funds.” Cryptocurrency prices can also be more volatile. The FTC issues the following warning: “The value of a cryptocurrency can fluctuate rapidly, even by the hour. It is determined by a variety of factors, including supply and demand.
“An investment that is worth thousands of dollars today may only be worth a few hundred dollars tomorrow. And, if the value falls, there is no guarantee that it will rise again “According to the FTC. Users should also be aware of potential fees associated with cryptocurrency investments, such as trading, deposit, and withdrawal fees. More information on fees can be found on the websites of the respective companies.