Disclaimer: The datasets shared in the following article have been compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject
Polygon, the Ethereum scaling solution behind MATIC, has made some exciting developments in the first two weeks of 2023. After tying up with popular names like Disney and Reddit, Polygon announced a partnership with fintech giant Mastercard earlier this week. Both firms have joined hands to launch a web3-focused incubator.
Read Price Prediction for MATIC for 2023-24
In other news, Polygon has revealed that it will be going ahead with a plan to hard-fork the network. The proposed update is slated for 17 January. According to Polygon, the update will address the spikes in gas fees and chain reorganizations. The price of MATIC went up more than 5% following this news.
Meanwhile, a new report published by Blockchain analytics firm Messari shows that the third quarter of 2022 saw a 180% increase in the number of active addresses Q0Q, with total transactions for the quarter coming in at 2 billion.
Additionally, Polygon’s partnership with Warren Buffet-backed Nubank, which was announced last week, is being seen as a positive development for the network.
Popular TV Network SHOWTIME recently announced a collaboration with Polygon and Spotify.
In other news, Polygon informed users that Ethereum’s Merge had dramatically reduced its carbon dioxide emissions.
Polygon Network reached a new milestone on 15 November after the number of unique addresses reached 191.2 million. Data from polygonscan shows that the daily transactions on the Polygon chain took a significant hit following the news of FTX’s bankruptcy. As of 15 November, the total transactions stood at 3.26 million.
Polygon announced a partnership with Nike earlier this week. This joint venture will see the sportswear apparel brand bild it’s web3 experiences exclusively on Polygon.
MATIC’s YTD chart may suggest a buy signal, given that the crypto is currently well above $1, compared to $2.58 towards the beginning of the year. While this may look like a ripe opportunity to beef up MATIC holdings at a discounted price, it is important to look at other factors while making an investment decision.
Numbers from the trading volume, however, are quite worrisome. Ethereum’s most popular layer 2 scaling solution has lost more than 62% of its daily trading volume over the last seven days. $361 million worth of MATIC was traded over the past 24 hours, compared to $525 million two weeks ago.
One possible reason for the sharp decline in the daily volume of MATIC is the Ethereum Merge that took place on 15 September. The crypto has taken a hit following the Merge event, with both market cap and daily volume on a downtrend.
Polygon recently published an analytical insight into its bridge flow between January and August 2022. A closer look at the numbers revealed that in these 8 months, more than $11 billion entered the Polygon ecosystem from multiple chains. Ethereum and Fantom Opera contributed the most with an inflow of $8.2 billion and $1.06 billion, respectively, which also puts it at the top in terms of net volume.
As far as bridges are concerned, Ethereum’s PoS bridge and Plasma bridge accounted for a net volume of $1 billion and $250 million within this time period. Meanwhile, Ethereum’s PoS and Fantom Opera’s Multichain bridge accounted for a combined outflow volume of more than $7.2 billion. Considering all 43 bridge chain pairs, the average volume comes out to be $48 million.
At press time, MATIC was trading at $1.046.
In February 2021, Matic rebranded to Polygon in a bid to provide a scalable version of Ethereum’s infrastructure and introduce overlay rollups to combine another layer 2 platforms for instant transactions, among other things. Polygon retained the name of its native token MATIC. The token proceeded to gain by over 200% over the next 30 days. Polygon runs on the proof-of-stake consensus protocol and can be described as an Ethereum layer 2 scaling solution with the best of both worlds.
In 2021, MATIC’s price went soaring thanks to the increasing popularity of Ethereum and surging activity in NFTs and play-to-earn games like Axie Infinity. MATIC began the year at a humble $0.018 and a market cap of $81 million. By the end of the year, MATIC’s market cap hit a whopping $20 billion, with the altcoin touching its all-time high of $2.92 on 27 December.
On 12 May 2021, Ethereum co-founder Vitalik Buterin donated crypto worth $1 billion to the India Covid-19 relief fund set up by Nailwal. This seemingly unrelated event caused MATIC to surge by 145% within the next 48 hours. By 18 May, the token had gone from $1.01 all the way up to $2.45, gaining 240%.
In May 2021, Polygon was in the news after it received backing from billionaire investor Mark Cuban, who revealed plans to integrate his NFT platform Lazy.com with Polygon. Following his investment in Polygon, Cuban claimed that the Polygon Network was “destroying everybody else” at the Defi Summit Virtual Conference in June 2021.
Since the beginning of 2022, Polygon has secured various partnerships, most notably with Adobe’s Behance, Draftkings, and billionaire hedge fund manager Alan Howard for the development of Web3 projects. Polygon boasts partnerships across various industries. Instagram and Polygon have collaborated on NFTs too.
Stripe has launched global crypto pay-outs with Polygon. Fashion brands like Adidas Originals and Prada have launched NFT collections on polygon
Based on gathered adoption metrics, Alchemy has described Polygon to be the best-positioned protocol to drive the booming Web3 ecosystem. Data from Alchemy also showed that at press time, Polygon hosted more than 19,000 decentralized applications (dApps) on its network.
On 27 May 2022, Tether (USDT), the largest stablecoin by market capitalization, announced that it was launching on the Polygon Network. MATIC rose by more than 10% following news of the launch.
Citigroup released a report in April 2022, one in which it described Polygon as the AWS of Web3. The report went on to claim that the Metaverse economy is estimated to be worth a whopping $13 trillion by 2030, with most of it being developed on the Polygon Network. Citigroup also believes that Polygon will see widespread adoption thanks to its low transaction fees and developer-friendly ecosystem.
The Terra network’s collapse in May 2022 triggered an exodus of developers and projects. Polygon soon announced a multi-million dollar, Terra Developers Fund, in a bid to help the migration of anyone looking to switch networks. On 8 July, Polygon Studios CEO Ryan Wyatt tweeted that over 48 Terra projects had migrated to Polygon.
Crypto exchange Coinbase published a report on 8 August 2022 that claimed that the future of Layer 2 scaling solutions could very well be a zero-sum game, hinting that layer 2 solutions like Polygon could overtake Ethereum in terms of economic activity.
On 8 August 2022, blockchain security form PeckShield reported a rug pull by the Polygon-based play-to-earn game Dragoma, following a sharp decline in the value of its native token DMA. The same has been corroborated by data from Polygonscan which shows a clear surge in token transfers and transfer amount on the day of the alleged rug pull which led to a loss of over $1 million.
In the week following Polygon’s announcement of the Gnosis bridge, MATIC surged more than 18% breaking the crucial resistance at $1 for a brief period. This feature paves the way for Web3 teams like DeFi protocols and DAOs to transfer assets between Ethereum and Polygon, for considerably fewer gas fees without compromising on security.
Numbers from the 32nd edition of PolygonInsights, a weekly report published by Polygon outlining key network metrics, indicated that in spite of dropping down from the $1 mark that MATIC had reclaimed barely a week before, not all was lost. Weekly NFT volume stood at $902 million, a whopping 800% increase from the previous week. Meanwhile, active wallets grew by 75% to 280,000.
In an industry that is often bashed for being energy intensive and harmful to the environment, Polygon has distinguished itself by achieving network carbon neutrality after offloading $400,000 in carbon credits. This nullified the carbon debt accrued by the network. As per the ‘Green Manifesto’ published by Polygon, they now plan to achieve the status of being carbon-negative by the end of 2022. In fact, they have pledged $20 million towards that milestone.
Cercle X, the world’s first decentralized application for waste management solutions, announced on 15 August that it had integrated with Polygon to leverage Web3 to digitize the garbage disposal process by developing a waste management dashboard.
Data from blockchain analytics firm Santiment showed that following the market-wide sell-off triggered by the collapse of Terra, almost 30% of the supply held by top exchange addresses (whales) was taken off of exchanges, the same is corroborated by the visible spike in…