—TechRound does not recommend or endorse any financial or investment practices. All articles are purely informational—
In the past year, Polygon has come out as one of the strongest projects in the blockchain space. Its team has provided significant upgrades to the protocol despite the bear market. They also launched a range of new products.
From ZkEVM to Validium and rollups there’s a lot to be excited about when talking about Polygon.
We will consider the latest developments of Polygon and its future potential. Going over these narratives should give you sufficient information on this growing ecosystem. Below are some of the main reasons why you might want to swap your BNB to MATIC.
MATIC’s Layer 2 Scaling
Polygon is one of the most successful layer 2 scaling solutions for Ethereum. The initial Polygon blockchain acts as a sidechain to Ethereum. Users can bridge their assets on this PoS network to enjoy reduced fees and faster transactions.
With the recent addition of zkEVM and rollups, Polygon acts as a genuine layer 2 of Ethereum. Transactions executed on Polygon zkEVM are validated on the Ethereum blockchain in batches. The work remains concentrated on the ZkEVM chain while simultaneously benefitting from the security of Ethereum.
We should note that chains that use the zkEVM developer kit are designed to be compatible. This allows for much higher asset compatibility across different blockchains in the ecosystem. Users will be able to transfer liquidity across different chains without having to rely on risky third-party bridges.
Reduced Transaction Fees
Ethereum has experienced huge roadblocks regarding its scalability and low throughput (27tps). During high traffic, the network becomes quickly congested. This leads to very high gas fees, and a single DEX swap can cost hundreds of dollars.
Polygon, with its 7,000 transactions per second throughput alleviates the strain in the underlying Ethereum blockchain. A transaction on Polygon costs an average of 0.05 MATIC, which is less than a few cents.
This premise has allowed the Polygon DeFi ecosystem to thrive as it allows developers to launch gas-intensive apps on the chain.
Participation in MATIC’s DeFi Ecosystem
As previously mentioned, the Polygon DeFi ecosystem is continuously growing. Thanks to native projects like Quickswap and Beefy, the ecosystem has attracted millions of investors. The TVL on Polygon currently exceeded 1 billion USD, putting it in the top 10 of blockchains in the industry.
Moreover, considering the success of native Polygon apps, Ethereum-based developers have launched their versions on Polygon. Consequently, you can now find industry-leading names like Uniswap, Aave, and Curve Finance on Polygon PoS.
Diversifying Crypto Portfolio
Swapping some of your BNB to MATIC will also allow you to diversify your portfolio. BNB Chain and Polygon react differently to the market. You can maximize the potential of your portfolio and follow different crypto narratives in the prospective bull run.
The narrative of Layer 2 scaling for Ethereum has grown in strength since the release of Arbitrum and Polygon ZkEVM. This potential could multiply in a bull market. Gains on MATIC tokens could exceed 10x from the current levels.
Many analysts believe that BNB already reached its potential with its previous ATH.
Long-Term Potential
Polygon’s team designed the latest products to be future-proof. They are aiming to shape the blockchain industry with their innovative solutions. Ethereum requires layer 2 scaling to become functional for mass adoption. Without projects like Polygon, the entire DeFi industry might not reach its potential.
Polygon provides the zkEVM technology for a scalable, interoperable blockchain future. Users will be able to onboard into this new financial paradigm at a lower cost and without friction. MATIC has incredible potential, especially when compared to DENT price predictions for 2024.
Now you know the basics and benefits of the Polygon ecosystem. This project has managed to stand out from the crowd by building during the most difficult times. With strong partnerships like Starbucks and Nike, we may see significant gains in 2024.
—TechRound does not recommend or endorse any financial or investment practices. All articles are purely informational—