What is Polygon (MATIC)? Learn More About MATIC Crypto

Brandie E Blackler
10 Min read

What is Polygon crypto, also known as MATIC? What chain is it based on? And what are the actual use cases of the Polygon crypto?  

As we move slowly into a more mature era of cryptocurrency, and hence blockchain technology as a whole, it becomes easier to understand the differences between the many cryptocurrencies. 

We will cover these topics (and more) in this article, giving you a better understanding of Polygon and MATIC. We will also cover if and how you can trade the Polygon crypto at Admirals. 

What is Polygon MATIC Crypto? How Does It Work? 

The Polygon Network, formally known as the Matic Network, is a secondary scaling solution based on the well-known and popular Ethereum Network. 

To put it in simplest terms, the Polygon Network solution operates in conjunction with, or on top of, an existing blockchain network (opposed to operating as a proprietary chain) - In this case, as mentioned, on Ethereum

It is also known in blockchain industry terms as a ‘layer 2 solution’. 

Depending on your extensiveness of knowledge within the crypto space, you may be well aware that Ethereum's transactions have become not only slow but expensive. 

While Ethereum has a great reputation and is considered the second-largest cryptocurrency by market cap, the speed and cost of the network, especially in peak transaction times, poses many challenges for the crypto’s future. 

So, where does the Polygon crypto fit into all of this? 

The Polygon Network is an ideal solution for not only Ethereum but for the crypto community as a whole. 

Considering Polygon is a scaling solution, having this kind of overlay network on the Ethereum blockchain makes the payments made both cheaper and faster; the Polygon Network assists in processing part of these transactions, lessening the congestion which would exist otherwise. 

And how does Polygon assist in the processing and hence scalability of these transactions? 

Polygon processes these batches of transactions on their own proprietary proof-of-stake blockchain. 

What’s the Difference Between Polygon and MATIC? 

This is an important but simple query to cover while we cover more details on what is Polygon crypto. 

Simply put, the Matic Network (launched in 2017) rebranded in 2021, changing to the name ‘Polygon Network’. 

However, the original ticker, MATIC, did not change during the rebrand – also maintaining its original utility and use case. 

If you’re interested in trading crypto CFDs but have yet to try it out, we recommend first registering a demo account with us. This allows you to practice trading with virtual funds first, without putting capital at risk: 

Risk Free Demo Account

Register for a Free Online Demo Account and Master Your Trading Strategy

 

What is Polygon Crypto (MATIC) Used for? 

As we have covered the most important question of, what is the Polygon crypto, a brief history, how it works and why it’s important, let’s go further in defining what Polygon MATIC is used for. 

Given that Polygon is a layer 2 scalability network solution to Ethereum, the network’s token known as MATIC is an ERC-20 token (the technical standard name for Ethereum’s smart contract token). 

Let’s review some of the use-cases of MATIC, below: 

  • Proprietary Platform Currency; MATIC tokens run the entirety of the Polygon platform, including paying the ongoing transaction fees. 
  •  Staking; Earn percentage-based rewards by staking, or holding, the Polygon crypto on the network, with the option to Validate or approve transactions. 
  • DeFi Protocols; Integrate and utilize various DeFi projects using both the Polygon Network and MATIC. 
  • Purchase NFTs and Digital Assets; MATIC can be used in conjunction with a Web 3.0 Wallet (like MetaMask) to purchase NFTs and digital assets based on its ERC-20 token function. 

While the above use-cases are quite broad in their reaches, these capabilities only scratch the surface in regards to the future potential of the Polygon crypto, or MATIC. 

Given the relatively young age of the Polygon Network, and Web 3.0 as a whole, it is fair to assume that the year 2022 will see much more traction in this area. 

Advantages and Disadvantages of the Polygon Crypto (MATIC) 

Various cryptocurrencies on the market come with their advantages and disadvantages. The Polygon crypto (MATIC) is no different. These basis points can affect how you trade on the market, so we will highlight some of these below: 

Advantages of the Polygon Crypto: 

Disadvantages of the Polygon Crypto: 

  • Not a proprietary blockchain (since it is a layer 2 on top of the Ethereum blockchain) 
  • Not used for everyday purchases (main use case is to be used within the Polygon network and its direct transactions) 

Is the Polygon MATIC Crypto a Good Investment? 

Depending on how much exposure you want to have to the cryptocurrency market will define if you consider the Polygon crypto (MATIC) to be a good investment or not. 

As with any trade or investment, you want to first ensure that you understand how an instrument or currency works – which is the aim of this article. 

What is to come in the year 2022 for the Polygon crypto (MATIC)? We summarize some upcoming points which can help you decide if you consider Polygon to be a good investment in 2022: 

  • As of January 2022, the new Chief Executive Officer (CEO) of the Polygon Network is Ryan Watts (former Head of Gaming at YouTube). This is a promising step forward for the success of Polygon. 
  • The price prediction for Polygon is generally positive for 2022, with a forecast of $4.75 by the end of the year. 
  • A main potential downfall for the Polygon crypto is increased competition in 2022, with the possibility of more scaling solutions coming onto the market. 

How Much Could Polygon MATIC be Worth? 

As with any currency or instrument, there is no sure way of knowing what it may be worth in the future, but you can always make a prediction based on both fundamental and technical analysis. 

With data from Changelly on March 3, 2022, Changelly being a reputable cryptocurrency exchange, the following price predictions have been made, from the year 2022 until 2025. See the table below: 

Year Polygon Price Prediction
December 2022 $4.75
December 2023 $6.51
December 2024 $9.55
December 2025 $14.18

Naturally, there is no certainty that these prices can or will be reached, which is why it is always important to monitor your trades on an ongoing basis. Please be sure to always trade responsibly and use a risk management strategy.

Can You Trade Polygon (MATIC) at Admirals? 

As you may be aware, Admirals offers over 30+ cryptocurrency CFDs to trade using our innovative Trade.MT5 platform. 

Currently, you can trade the Polygon crypto or MATIC CFD against the US Dollar using our Trade.MT5 platform. 

You have the option to trade the MATIC CFD with no commission applied, a minimum/typical spread of 3%, and a minimum margin of 0.5. 

See the chart example, below, taken directly from the Admirals Trade.MT5 Web Trader; this chart gives some insight on the performance from late 2021 up until now, March 2022. 

 

MTCUSD Daily chart taken from Admirals Trade.MT5, captured on March 8, 2022. MACD indicator with EMA of 12 and 26, SMA of 9 (Daily Timeframes). Performance dates from 24 November, 2021, until 8 March, 2022. Past performance is not a prediction of future results. 

With the above chart image, you can see the red line fluctuating above and below the signal line – showing both Bulling and Bearish trend characteristics in this given timeframe.  

Ideally, when analysing the price charts for MATIC, or any instrument in general, it is important to reference various indicators in conjunction with each other, in order to have the clearest overall view possible. 

The Moving Average Convergence/Divergence (MACD) is a popular indicator for cryptocurrency trading, as it is both user-friendly and generally provides strong signals, given it is based on trends and suitable for both short- and long-term price momentum. 

Have you used the MetaTrader 5 platform? As an Admirals client, we offer free access to MetaTrader 5 – Click the banner below to download: 

The World's Premier Multi Asset Platform

 

What is Polygon Crypto? Conclusion 

If you’re reading this article, it is highly likely that you are fascinated by the developing world of cryptocurrency, blockchain, and the many use cases it continues to build on. 

Although crypto has been around for a decade or so at this point, it is fair to believe that the year 2022 will bring more developments than what we have seen yet. 

As we continue as a globe to move towards a cashless society, increased regulation, and mass adoption to the blockchain, only time will tell how the markets respond to such. 

The Polygon crypto (MATIC), along with the many other cryptocurrencies, will most likely take a part in the financial future of most individuals, to come.

Common questions about Polygon

What is the difference between Polygon and Matic?

Polygon is the name of the previously Matic network. The name of the cryptocurrency MATIC was renamed to Polygon. But the former name Matic still is in use not to confuse.

Who is the founder of Polygon (MATIC)?

Polygon was founded by Jayant Kanani, Sandeep Nailwal, and Anurag Arjun in late 2017. The Serbian engineer Mihalio Bjelic also joined later as a cofounder.

If you’re yet to register with Admirals in order to take part in live trading, you can do so by clicking the banner below: 

Open a Live Account

Trade the Live Markets and Trade Efficiently

 

INFORMATION ABOUT ANALYTICAL MATERIALS: 

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets and Admirals trademarks (hereinafter “Admirals”). Before making any investment decisions please pay close attention to the following: 

1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research. 

2. Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content. 

3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest. 

4. The Analysis is prepared by an independent analyst (hereinafter “Author”) based on the Brandie, Financial Writer and Analyst, personal estimations. 

5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis. 

6. Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed. 

7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved

TOP ARTICLES
What is Uniswap? Learn More About the UNI Crypto
Uniswap is an increasingly-popular crypto exchange based on the Ethereum blockchain. But what is Uniswap, exactly?  Uniswap is a decentralized exchange, also known as a DEX, that facilitates worldwide crypto trades with no intermediary required. Many other decentralized exchanges have emerged follow...
How to Trade Ethereum CFDs
Cryptocurrencies are on the rise. Ether (ETH) is one of the most popular offerings. With an immense boost from such companies as Toyota, BP, Microsoft, Intel, and others, it has enjoyed a successful crowdsale with huge gains. This is the present and the future of the digital currency, but many peopl...
How to Trade Bitcoin Cash CFDs
We have heard plenty about Bitcoin, but what about Bitcoin Cash, the 'fork' or spin-off of Bitcoin? We are not leaving this alt coin left behind. This article will provide traders with an explanation of what Bitcoin Cash is, how it differs from Bitcoin, how to trade the BCH/USD CFD, how to trade Bit...
View All