Polygon Shows Strong 2023 Start; What’s Behind Its Success?

Polygon (MATIC) has recently been on a roll, increasing 57% since the beginning of 2023, exceeding both Bitcoin and Ethereum. This gain may be attributed to several causes, including growing institutional interest, new collaborations, and an overall optimistic mood in the cryptocurrency industry.

Polygon is an Ethereum Layer 2 scaling solution that enables developers to rapidly and efficiently construct and deploy decentralized apps. It employs a network of side chains linked to the main Ethereum blockchain. As a result, transactions may now be handled significantly faster than on the main chain.

As a result, it’s suited for high-volume applications like DeFi protocols or gaming systems. The network also supports various programming languages, making it easier for developers to construct their projects on the platform.

Several reasons have contributed to the recent price increase in Polygon.

• Institutional investors have been increasingly interested in Polygon due to its scalability solutions and low transaction fees. 

• Polygon recently announced partnerships with major companies such as Chainlink and Coinbase Custody which have further boosted investor confidence in the project. 

• Finally, the overall bullish sentiment returning to the crypto market has contributed to MATIC’s impressive performance over the past month.

Polygon employs a proof-of-stake (PoS) consensus method and is compatible with Ethereum Virtual Machine (EVM) smart contracts. This makes it simple for developers to create and deploy dApps on Polygon. In addition, Polygon is consistent with the same programming languages and tools as Ethereum.

Polygon’s scalability is one of its primary features. Unfortunately, the Ethereum network has struggled with scalability (even after the Merge), resulting in delayed and costly transactions.

Polygon addresses this issue by giving dApp developers a scalable and low-cost network. As a result, they may now use the Polygon network to conduct quick and inexpensive transactions. This has resulted in a surge of app developers and users who are now creating and deploying dApps on the network.

Polygon’s growing popularity has contributed significantly to its latest price increase. As more dApps migrate to the network, demand for MATIC tokens rises. Polygon has also attracted several important participants, including some of the largest DeFi (decentralized finance) initiatives. This has raised its appeal even further.

Another reason for its rising popularity is its compatibility with Ethereum. This enables smooth asset and data movement across the two networks, making it easier for dApp developers to migrate their projects to the network. Users may access a wide number of dApps and services on Ethereum thanks to Polygon’s interoperability. As an added bonus, it allows for quick and inexpensive transactions.

Instagram just announced the introduction of its own NFT trading platform. This enables users to immediately produce, purchase, and sell non-fungible tokens on the network. This has played a significant role in MATIC’s pricing increase.

It will boost the altcoin’s usability and expand its use to the larger NFT community. Polygon’s inventor, Sandeep Nailwa, has announced his intention to make it one of the top three cryptocurrencies in the world. He wants the network to be as popular as Bitcoin (BTC) and Ethereum (ETH) (ETH).

MATIC powers the new NFT trading platform, which is connected with OpenSea, Solana, and Phantom Wallet. This is an interesting development for Instagram users who want to learn more about digital art and collectibles.

It might provide a new platform for artists to promote and sell their work. Instagram has taken a significant step toward being a key participant in the NFT industry with this move.

Polygon’s quick price increase has piqued the interest of investors. Many people are now interested in investing in the coin. The platform’s popularity is increasing, making it a very appealing investment prospect. The growing number of dApps being developed on the network adds to its allure.

Furthermore, the network has lately released a number of new features and collaborations, which has increased investor interest.

Polygon-ERC20, a new token standard, has made it easier for investors to buy and sell native tokens. Traders may now trade the asset easily on both controlled and decentralized exchanges.

To accelerate the adoption of its blockchain technology, the network has developed various agreements with notable enterprises. Among the important collaborations are:

• Starbucks: Polygon has partnered with Starbucks to explore blockchain technology for tracking the coffee supply chain. The partnership aims to increase transparency and efficiency in the coffee supply chain and to improve the traceability of coffee beans from farmers to customers.

• QuickNode: Polygon has partnered with QuickNode, a leading infrastructure provider, to offer fast and secure access to the Polygon network. The partnership aims to make it easier for developers to build and deploy dApps on the Polygon network.

• Aave: Polygon has partnered with Aave, a decentralized lending platform, to bring DeFi to the Polygon network. The partnership aims to bring the benefits of DeFi to a larger user base by providing access to low-cost and secure financial services on the Polygon network.

These collaborations are assisting in the development of a robust ecosystem of developers, users, and partners. This should encourage the use of its blockchain technology and contribute to the expansion of its ecosystem.

MATIC token demand has grown as use has increased. Major players and DeFi initiatives have been recruited.

The news of a Polygon-powered NFT trading platform on Instagram has also raised the price. The quick price increase has caught the attention of investors. They see it as an opportunity to invest in the decentralised ecosystem.