First, let’s explain what Polygon is. It was set up in 2017 and was called Matic Network until February 2021. You might still hear the term Matic Network from time to time, but it’s the same thing as Polygon.

Polygon is a framework for creating and building interconnected blockchain networks. This is particularly useful when it comes to setting up smart contracts, which are agreements between two parties that are automatically processed by the blockchain once certain demands are met. The most common platform for using smart contracts is Ethereum. However, Ethereum’s problem is that there was no mass adoption of decentralized apps – or DApps – using the system. There were some cases where a DApp became popular but that created another problem. A lot of people tried to use them but that meant high load times, which meant the Ethereum network slowed down considerably, which helped nobody, which in turn meant people stopped using the DApps, which meant the DApps never quite got the mass adoption they could, or should, have had.

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With any problem, there’s always a potential solution. In the case of Ethereum slowing down and delaying transactions due to a larger number of people using the DApps than intended, some developers sped things up by decentralising their systems. On one hand, this was good, because it meant the process got quicker and payments were speedier, but there were some downsides. Firstly, it was less secure. Secondly, the systems used their own blockchains, which did not necessarily take into account the changes that the likes of Ethereum had put into place. Thirdly, and perhaps most notably, they ignored the substantial developer community that was linked to the likes of Ethereum.

Matic Network, launched in October 2017, was designed to get around these issues and create a best of both worlds solution. Matic used a technology called Plasma, which processed transactions off-chain before moving them on to the Ethereum main chain to finalize them. This meant they could move quickly, without being slowed down by a high DApp user and developer base, but it could use DApps and the general Ethereum technological ecosystem to gain a wider market. It called itself a Level 2 technology, meaning it was not trying to change the basic blockchain layer, but people could work outside it. This meant that it was able to make things, particularly interactions, simpler while maintaining security and increasing accessibility. At least , that was the theory.

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In 2021, things changed a bit. Polygon was set up. It was basically the same as Matic, but while Matic was about moving things down to scale, Polygon was designed to set up blockchains that could operate with each other. The idea was to allow people to launch blockchain networks that were tailored to their needs. These could be customised with a range of modules, which would let developers set up sovereign blockchains with more specific functionality.
The system has its own cryptocurrency and, since Polygon is the de facto successor or upgrade to Matic, it takes its name: MATIC. 

How is Matic/Polygon doing these days?

The MATIC cryptocurrency is comparatively new. The network launched in early 2017, and its own coin went public around 18 months later, in April 2019. Initially it sold at  $0.00263 per token, and for a while, it hovered around that price. While it was up slightly to $0.04168 in December 2019, it again went down and got $0.01781 in 2021. With launch of Polygon, Matic’s value skyrocketed. On 13 March it was $0.4251, with an increase of more than 2286% in just 10 weeks. When the market corrected itself, dropping to $0.3019 on 25 March, its popularity could not be contained, nor it can be still. By April end, it had reached $0.792, up a further 86% from where it was in the middle of March.

The first half of May saw pretty dramatic fluctuations, but with an overall upward movement. The currency broke the dollar barrier on Sunday 9 May night – not too bad for something worth less than just two cents in the beginning of the year – before going down again to $0.8158 on 11 May during early hours. However, it bounced back like always to $1.0302 later that night and has been going up ever since, reached $1.6777 on 17 May 2021 morning and broke the $2 barrier during the early hours of the very next morning going up at $2.0752. It has grown by around 9,320% since the end of 2020 which is pretty remarkable and by far more than even the most optimistic MATIC price prediction could have legitimately foreseen.

 

On the ongoing correction market where every currency is going down more than 50% it is still holding upto $1 and the only way to go is up as people now have decided to ditch the ETH chain to move towards Polygon as they have the lowest fees in the market.

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