Key facts about Polygon (MATIC):
- Polygon was launched in October 2017 as Matic Network, which is a significant player in the Ethereum ecosystem.
- Polygon is a scalable blockchain platform that builds on the Ethereum blockchain and aims to connect all blockchain networks.
- Polygon can handle 65,000 transactions per second(TPS).
- MATIC, the native cryptocurrency of Polygon, was launched in 2019.
- The maximum number of MATIC tokens is ten billion.
- In December 2021, MATIC reached its all-time high (ATH) of $2.88 (€2.54) per token.
About Polygon (MATIC) as a cryptocurrency
Polygon was launched in October 2017 as Matic Network and emerged as a significant player in the Ethereum ecosystem. The Polygon team pioneered Plasma technology and developed sidechains as a scaling solution. The success of the Matic Network led to many projects and partnerships with industry leaders Binance and Coinbase. In 2019, the network introduced its own cryptocurrency, MATIC.
In 2021, the network rebranded as Polygon, focusing on 2-layer solutions for Ethereum-compatible blockchains. These solutions process transactions outside the main blockchain, on sidechains within a "second layer." This approach relieves the main blockchain, resulting in faster and cheaper transactions. The Polygon sidechain uses the Proof of Stake consensus mechanism. By holding Polygon (MATIC) tokens in your wallet, you can support the Polygon network and receive rewards in the form of additional MATIC tokens via staking.
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The idea behind Polygon
From the outset, the Matic Network identified several key issues in blockchain projects. These challenges included scalability, speed, and high transaction fees. With the 2-layer approach, the Matic Network successfully addressed some of the blockchain's limitations and has now expanded its objectives. Under the new name ‘Polygon’, the company embarked on a new mission: to resolve other challenges in the blockchain ecosystem and simplify developers' entry into this realm.
How does Polygon work?
Polygon provides a platform that empowers developers to create an optimal blockchain network. It combines the best aspects of a standalone blockchain with those of Ethereum, resulting in a platform that offers high scalability, flexibility, and sovereignty, coupled with interoperability, security, and the expertise gained over years of development.
The blockchain platform is built on top of Ethereum and aims to facilitate fast and cost-effective transactions with exceptional performance and security. Polygon offers developers pre-configured blockchains and an interoperable protocol through one-click deployment. This enables them to build decentralised applications (DApps) and facilitate exchanges between Ethereum and other blockchain networks. With Plasma technology, Polygon enables the transfer of MATIC tokens from Ethereum to the Polygon blockchain. Additionally, the company provides a modular security service. Polygon’s primary blockchain (Matic PoS Chain) serves as a security layer for all blockchains launched with Polygon. This multi-layered approach allows Polygon to future-proof its company and MATIC tokens while also securing Ethereum with a widely connected blockchain ecosystem. Polygon also benefits from the increasing number of DApps built on its platform.
MATIC tokens – the cryptocurrency of Polygon
MATIC tokens are used to pay transaction fees on the Polygon platform and reward users who participate in transaction verification and network security. MATIC tokens also act as incentives for developers to create DApps on the Polygon platform. You can easily purchase Polygon (MATIC) tokens through Bitpanda, for instance. If you prefer not to focus on one cryptocurrency, we have an ideal solution for you. With Bitpanda's Crypto Indices, you can invest in Polygon (MATIC) and other coins or tokens in one go, without purchasing them directly. The crypto indices automatically invest in a pre-constructed portfolio that includes the top cryptocurrencies based on their current market capitalisation and liquidity.
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More facts about Polygon (MATIC)
- Here are some interesting facts about Polygon and MATIC tokens:
- Polygon was launched in October 2017 by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun as a significant player in the Ethereum ecosystem under the name Matic Network.
- In 2019, Polygon introduced the cryptocurrency MATIC to the market.
- MATIC is an open-source cryptocurrency based on the Ethereum blockchain.
- The Polygon (MATIC) token entered the market on August 3, 2019, with an initial price of $0.01109.
- Until January 2021, the Polygon (MATIC) price remained relatively stable.
- The name changed from Matic Network to Polygon in early 2021.
- Starting from February 2021, the price of MATIC tokens experienced a surge, reaching $2.45 on May 19, 2021.
- The price of Polygon (MATIC) then declined, hitting a low point of $0.73 on July 20, 2021.
- This was followed by a longer upward trend.
- On December 27, 2021, MATIC reached an all-time high of $2.8765.
- Another decline occurred when the MATIC price dropped to $0.38 on June 20, 2022.The cryptocurrency has since recovered, fluctuating between $0.76 and $1.30.
- As of early February 2023, Polygon (MATIC) has a market capof approximately $10.3 billion, positioning it among the top 10 cryptocurrencies.
- Polygon aims to combine the best aspects of a standalone blockchain and the Ethereum universe.
- Polygon uses a Proof of Stake consensus mechanism for staking, enhancing scalability and reducing transaction costs.
- Polygon has a processing capacity of up to 65,000 transactions per second.
- Users participating in transaction verification and network security are rewarded with MATIC tokens.
- The maximum supply of MATIC tokens is 10 billion.
- According to the roadmap, all Polygon (MATIC) tokens were scheduled to be distributed by December 2022. However, as of February 2023, only approximately 8.7 billion tokens are in circulation.
- You can store your MATIC tokens in a digital wallet.
- Many cryptocurrency exchanges offer trading of Polygon (MATIC) tokens.
If you want to learn more about Polygon and MATIC tokens, you can refer to the Polygon (MATIC) whitepaper.
Polygon (MATIC) price: Milestones and key events
When Polygon's cryptocurrency entered the market, the price of MATIC tokens was $0.01109 per token. For over a year, the price remained relatively stable with minimal noticeable movements. At the beginning of 2021, the name change and the announcement of new goals brought about the first price surge. Polygon stated its commitment to providing a scaling solution for Ethereum and other blockchains, addressing the high transaction costs on the Ethereum network. The MATIC price rose to $2.45. By the end of July 2021, the price declined again but experienced another upward trend, culminating in an all-time high of around $2.88 in December 2021. Subsequently, the price declined and reached its low point of $0.38 in June 2022. As of February 2023, the MATIC price has been fluctuating between $0.76 and $1.30.
The key milestones and events in the Polygon (MATIC) price history so far are as follows:
- August 2019: $0.01109 per MATIC (entry price)
- February 2021: $0.12 per MATIC (start of price increase)
- May 2021: $2.45 per MATIC (peak of the first price increase)
- June 2021: $0.73 per MATIC (lowest price after the first price increase)
- December 2021: $2.88 per MATIC (all-time high)
- June 2022: $0.38 per MATIC (lowest price after the all-time high)
The price of the MATIC token is influenced by typical market factors such as supply and demand, overall market trends, global or political events, prohibitions, and competition. Specifically for Polygon, developments on the Polygon platform, such as the introduction of new features or the release of updates, can impact the price of MATIC tokens.
The history of Polygon and the MATIC token
The cryptocurrency MATIC, along with its underlying company Polygon, is still relatively young. Let's explore how the Matic Network evolved into Polygon.
New name, new goals
Initially known as Matic Network, Polygon focused on addressing well-known challenges of blockchain technology for Ethereum. These challenges included scalability, transaction speed, and cost. The company's success in tackling these issues led to the emergence of numerous projects and partnerships with reputable companies. Polygon established itself as a gateway to Web3, the decentralised web based on blockchain technology and smart contracts. Recognising this shift in perception, the founders of Matic Network decided to redefine their strategy and develop their own network. In early 2021, the company rebranded as Polygon. Its aim is to provide developers with an accessible entry point to blockchain technology through the Polygon platform, while realising the vision of a large, interconnected network. This involves combining the benefits of a standalone blockchain with the extensive Ethereum ecosystem, including scalability, flexibility, sovereignty, interoperability, security, and a wealth of developer experience.
Polygon’s proactive start
While memecoins like Dogecoin or SHIBA INU were introduced to the market as fun currencies, the Polygon (MATIC) token entered with a clear objective: to address Ethereum's scalability issues and drive development towards Web3. Polygon's 2-layer technology has already gained the trust of numerous renowned companies. Brands like Nike, Adidas, and Prada have released NFT collections based on the Polygon Layer-2 chain. Polygon also counts Mercedes, Bentley, Amazon, Meta, Reddit, Adobe, and Coca-Cola among its clients. Samsung is also using the Polygon blockchain for its streaming app Savage.
Polygon faces direct competition from two formidable cryptocurrencies: Cardano (ADA) and Solana (SOL). These two digital assets are often referred to as Ethereum competitors in the crypto market as they aim to tackle the challenges of the Ethereum blockchain. Cardano has developed a significantly more efficient blockchain, excelling in security and decentralisation while using the Proof Of Stake consensus mechanism. Ethereum, on the other hand, initially used Proof Of Work but has since transitioned. Solana, on the other hand, has been labelled an Ethereum competitor primarily due to its high scalability. However, both cryptocurrencies have encountered their own issues, which have kept them from surpassing Ethereum's technology so far. Solana has experienced frequent network crashes, while Cardano is still lacking use cases and its development progresses slowly.
Instead of directly competing against Ethereum, Polygon seeks to address the challenges of the Ethereum blockchain. The crypto company continues to build upon Ethereum's technology and leverage its advantages. The success of Polygon (MATIC) compared to Cardano and Solana seems to validate this approach. Additionally, Polygon dealt a blow to Solana by securing the NFT startup DeLabs, which had previously collaborated with Solana.
Factors influencing Polygon (MATIC) price
Like all cryptocurrencies, the price of Polygon (MATIC) tokens is subject to significant fluctuations. Various factors contribute to the market and influence the price. They include the following:
- Trends and developments surrounding the Ethereum blockchain
- New developments and updates for the Polygon platform
- Prominent customers using the Polygon blockchain, such as Prada, Nike, or Samsung
In general, these factors influence the crypto market
- Supply and demand
- Changes in the two leading cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH)
- Technical disruptions or application errors
- Hacker attacks
- Government regulations
- Global events, such as the outbreak of the COVID-19 pandemic or the conflict in Ukraine