When the leading altcoin Ethereum (ETH) became widely heard in the public in 2020 and 2021, it already had a great lead over other blockchains that were released amid the crypto bubble. Developers have spent years building tools and infrastructure on which projects like NFTs and new tokens can be built. Starting a new year, according to Travis Hoium, an analyst at consulting giant The Motley Fool, there is a cryptocurrency with a different kind of momentum that could make it the Ethereum of 2023: Polygon (MATIC).
Popular altcoin Polygon has partnered with many companies
Polygon is a layer-2 blockchain built on Ethereum. It aggregates transactions and then places a transaction on the main Ethereum Blockchain. The idea is to reduce the cost of each transaction and make the Blockchain more scalable while still using Ethereum’s infrastructure. Institutional partners flocked to Polygon, partly because of its scalability and development resources, and partly because Polygon paid millions of dollars to attract them. cryptocoin.com As we reported, Meta has enabled NFTs on the Instagram platform. Stripe is using Polygon for payments and Starbucks for a new NFT loyalty program.
Momentum is holding on
Cryptocurrency values have been largely driven by momentum. Cryptocurrencies have a natural network effect for investors and developers alike. No business model is usually developed for a useless Blockchain. Despite not having many users, Polygon attracts businesses with its low costs. On the other hand, it uses the development capability of Ethereum. According to the analyst, once businesses start flocking to Polygon, others will naturally follow. This was a similar dynamic to the NFT wave of 2021. Ethereum has become the most preferred Blockchain. This time, however, corporate money is flowing to Polygon.
Not all corporate projects will be permanent
According to the analyst, 2023 will be defined by companies trying to identify their best strategies for blockchain and decentralized Web3, unlike today’s web version, which is dominated by a few large companies. There are dozens of other companies experimenting with NFT loyalty programs, lower cost ways to pay, and digital products to sell in the crypto market. Most are building on Polygon. What is not entirely clear is whether companies will develop earning strategies for crypto and Web3 in 2023.
There are some great examples, such as Adidas and Nike launching successful projects with Bored Ape Yacht Club and RTFKT (which Nike acquired) respectively. But many companies saw NFTs as a cash grab game that they would want to join. This will not be a sustainable strategy, and those who have not been in cryptocurrency for a long time will eventually perish. The fact that companies are building on Polygon during a bear market may be enough to make MATIC the top cryptocurrency for 2023, according to the analyst. Some blockchains will fail as users and developers flee, but Polygon is here to stay, according to the analyst.
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