The favorites of the 2021 bull market altcoin Polygon (MATIC) has fallen out of favor in the last 12 months and Bitcoin, Ethereum and competing layer-2 tokens Arbitrum (ARB), Optimisim (OPT), IMX It significantly underperformed altcoins such as.
At this point, Polygon fell out of favor with investors, Katie Talati of Arca He said that investors’ lack of interest in the token is due to several reasons.
Speaking to Coindesk at this point, Talati said that the reason for Polygon’s poor performance was Ethereum He stated that there might be a Dencun update.
ETH Pointing out that the Dencun upgrade will significantly reduce transaction fees for layer 2 projects, Talati stated that Polygon will not be able to benefit much from this upgrade and its effects compared to rival altcoins:
“The upcoming Ethereum Dencun upgrade will reduce Layer 2s’ costs of sending data back to the Ethereum mainnet.
“Although Polygon will benefit from the upgrade, other tier L2s such as Arbitrum and Optimism will see more significant cost reductions, which has led to the recovery of these L2s.”
Taliti also stated that another reason why there is no significant uptrend in MATIC is former Polygon President Ryan Wyatt’s decision to switch to Optimisim.
Taliti said about this:The second reason for the underperformance is that Polygon’s former president, Ryan Wyatt, left last year to join Optimisim. Many believe that Wyatt was responsible for Polygon’s major partnerships and that his departure deals a serious blow to Polygon’s growth efforts” said.
*This is not investment advice.
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