What is Polygon (MATIC), Disney’s preferred blockchain, and why is it up 60%?
The short-term rally that the cryptocurrency market is experiencing, days before the very important meetings in the market with the central banks in Europe and the USA, reveals a little-known main character for most investors. The MATIC token for the blockchain Polygon rose 60% in the last weekthanks to a combination of factors that put it in the spotlight of market participants.
With a price tag that hovers around $ 0.90, Ethereum team two blockchain ‘altcoin’ is not even among CoinMarketCap’s top 10 tokens by market value. The current value is still far from the all-time high of almost $ 3 in December last year, however Experts believe that the bull race is aimed at a minimum of $ 1 due to the remarkable attention Polygon receives.
The MATIC network is another protocol increase the scalability of the Ethereum blockchain and add new uses. Polygon works through a side chain that connects to Ethereum that allows further processing, they explained from the ‘Blockchain Observatory’. “That’s undoubtedly all Ethereum aims to do with Ethereum 2.0,” they pointed out. “It is a project that corrects Ethereum’s treatment capacity problems. It also uses the proof-of-stake model as a consensus mechanism. Polygon offers a much more intuitive architecture for developerswhich makes it a more attractive network for inexperienced users, “they added.
“MATIC polarizes opinions in the cryptocurrency market, but the level of adoption is undoubtedly,” said Nick Heale, 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 is around $ 1.76 billion.
The network released data indicating network growth among other dApps (decentralized applications). Just this week, Good Ghosting and Slingshot entered the top 20 dApps.
It also recently announced an agreement with social forum Reddit, which allows users to buy blockchain-based avatars in non-fungible tokens (NFT) format for their profile. It collaborated with Flipkart Firedrops at the NFT arena.
Because of all this, analysts have drawn very good forecasts for MATIC, but the top of the pie was provided by Disney, which ‘blockchain’ has been selected to participate in the house of Mouse’s prestigious accelerator program. The exclusive accelerator program was open to “venture capital funded companies in the growth stage with a vision to influence the future of technology and entertainment.” Disney revealed that this year it will focus on use cases involving technologies such as augmented reality (AR), artificial intelligence (AI) and non-fungible tokens (NFT).
One last reason experts mention to explain MATIC’s boom is the recovery of the entire market and the good mood around Ethereum’s protocol change work, which is set for September. The total capitalization of cryptocurrencies is back to around 1 trillion dollars.
