Buying Polygon (MATIC): value and trends

Why buy Polygon (MATIC)

Consider buying Polygon, regardless of the current value of MATIC, because it addresses one of Ethereum’s significant issues: scalability. Polygon aims to make services that rely on blockchain technology faster, more efficient, and more secure. Applications such as video games, decentralised exchanges, and flash loans stand to gain significantly from their enhanced speed.

Another compelling reason to invest in Polygon (MATIC) is that it is currently the fifth most used blockchain. Its network has approximately 300,000 active users, and its total value locked (TVL) is $778 million.

On the Polygon network, gas fees—necessary for processing transactions—are paid using the MATIC token. This token also allows holders to participate in the protocol’s governance. Unlike most Ethereum Layer 2 blockchains, which typically require using ETH for these purposes, this feature makes Polygon particularly appealing. Additionally, a small amount of MATIC is ‘burned whenever someone utilises the network,’ further enhancing its potential value.

Price performance of MATIC

In 2024, Polygon (MATIC) went through a transformational year with the much-anticipated migration to the new POL token, which started on 4 September. This upgrade was designed to improve the ecosystem’s security, liquidity and efficiency, marking a significant evolution for the network. However, the price performance was not linear: MATIC recorded a 12% drop in January, reaching USD 0.8540, then peaked at USD 1.29 in March before embarking on a bearish phase that saw the price break long-term support at USD 0.100. The downtrend continued into August, with the token trading at USD 0.3840, down 22% from the previous month. Despite the volatility, strategic partnerships and the move to POL could offer new growth opportunities for the project in the long run.

What is Polygon (MATIC) and how was it born

Polygon is a blockchain built on the Ethereum network, and its cryptocurrency is called MATIC. Founded in 2017 by three Indian developers – Jayanti Kanani, Sandeep Nailwal, and Anurag Arjun – Polygon addresses the issue of scalability in blockchain technology. The MATIC token was officially launched in 2019 through an Initial Exchange Offering (IEO) on Binance. In 2021, the project rebranded from “Matic” to “Polygon,” transforming from a simple layer two blockchain into a comprehensive framework for developing scalable decentralised applications (dApps). Today, it serves as a benchmark for developers creating dApps on Ethereum.

At launch, 3.8% of MATIC tokens were issued, increasing to 19% in the following months. The total token supply is capped at 10 billion, which is expected to be reached by 2024. Polygon aims to create a system where all blockchains are interconnected and can collaborate effectively. The project aims to enable users to interact with decentralised systems without relying on proprietary platforms.