According to the consulting giant, this altcoin, which is up more than 90% this year, is booming and could bode well for investors in the years to come. As Kriptokoin.com, we have compiled the altcoin details targeted by the consulting giant for you.
This altcoin continues to prove itself
After losing more than 70% of its value in 2022, Polygon (MATIC) has increased by more than 90% since the beginning of 2023. According to the company, there is reason to believe Polygon has plenty of room to work in the years to come.
Although it smashed the 2022 price, Polygon actually had one of the more successful years compared to its peers. As a result of multiple new partnerships with companies looking to tap into the potential of blockchain technology, Polygon’s market cap has jumped into the top 10 most valuable cryptocurrencies.
Meta Platforms announced various forms of partnership with Polygon in 2022 as companies such as Disney, Starbucks, Coca-Cola and JPMorgan all seek to develop new business models that leverage the potential of blockchain technology.
A valuable helper
Polygon was chosen for several reasons, but probably the most attractive was its compatibility with Ethereum. Known as the Layer 2 blockchain, Polygon’s goal is essentially to make Ethereum faster and cheaper to use. One of the most popular blockchains, Ethereum can be costly and slow to use when traffic is high.
With Polygon, transactions are processed on its own blockchain, bundled together, and then added to Ethereum. As a result, Polygon offers users the best of both worlds. It’s cheap to use, fast, and remains compatible with Ethereum.
This technology has helped put Polygon in a unique position that makes it one of the most sought after blockchains. But with more companies looking to use blockchain, Polygon itself needs to be ready to ensure it can handle an exponential growth in users without sacrificing speeds or increasing fees.
Zk-rollups and Polygon
Over the past year, Polygon developers have been busy implementing a new technology that will enable the blockchain to handle this increase in usage. To do this, a new technology known as zero-rollups (zk-rollups) will be implemented, with a release date set for late first quarter or second quarter 2023.
With Zk-rollups, using Polygon will become even faster and cheaper. The technology behind zk-rollups is somewhat technical, but understanding this process can be useful for predicting the potential future price of Polygon because usability is one of the key attributes that determines the value of a cryptocurrency.
Currently, transactions on Ethereum require validators to include ‘proofs of computation’. This is like having to show off your work while solving a math problem and prevents bad practices from occurring on the blockchain. As a result, this altcoin can process more transactions and make Ethereum even faster. This new functionality can help increase Polygon’s speeds to around 40,000 operations per second (tps).
While its price is currently around $1.35, there is still a lot of potential for Polygon as it is still less than 45% from its all-time high. When zk-rollups becomes available, Polygon will be able to handle exponentially larger amounts of traffic thereby increasing its availability. Better still, as blockchain usage trends continue to materialize, Polygon is in a position to become a lucrative foundation of crypto portfolios for years to come.
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