Polygon, a prominent platform in the cryptocurrency space, made significant advancements in its ecosystem last year, introducing a new MATIC token and plans to transform its proof-of-stake blockchain into a data availability layer. These developments, including the “AggLayer” project that aims to connect monolithic blockchains, have been instrumental in Polygon’s growth.
Despite these advances, Polygon’s MATIC token has not kept pace with Ether (ETH). Or even Optimism (OP) and Arbitrum (ARB) in terms of market performance. However, analyst and founder of the Casta Crypto channel, Rafael Castaneda, argues that comparing MATIC with OP and ARB may not be the right approach.
Castaneda highlights that MATIC has been on the market for longer. Therefore, it occupies a higher position in the market capitalization rankings and has already reached an appreciation of 24,000% since its historical minimum. With the introduction of new tokenomics for POL, Polygon’s new token, the platform is moving away from the classification of a “second-tier token.” This suggests that the true value narrative for MATIC is still emerging. Particularly, its application as an efficient solution for Ethereum scalability.
Polygon believes that comparison of MATIC with OP and ARB may not reflect its unique position
Current market attention has focused more on newly launched smart contract platforms and second layers, especially those with airdrops. Thus, this “metanarrative” has overshadowed MATIC, which has not received as much attention in this context.
Regarding the promises made by Polygon and MATIC, Castaneda notes that all technical commitments have been fulfilled so far. He mentions that the launch of the aggregation layer in February will be an important milestone. However, along with developments in POL staking, the timeline of which has yet to come into planning. Furthermore, adapting the Polygon PoS and Polygon zkEVM networks to benefit from the fee reductions of the new Ethereum upgrade, Dencun Fork, is another crucial aspect.
Castaneda warns that while delays and technical glitches could negatively impact the token’s price, there is no reason to doubt Polygon’s potential. If the technical milestones are implemented successfully, it would be fair to say that MATIC is on track to meet the expectations set since the announcement of Polygon 2.0.
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.