Last year saw Polygon (MATIC) lose a remarkable 70% of its value, but actions taken amidst that crypto winter could equate to 2023 success that is sustainable for investors. As the value of the crypto asset sector is seeing early gains to start the year, MATIC may be on a different plain.
Thus far, Polygon is on a redemption track, up 90% since the start of the year. Although the losses were real in 2022, Polygon saw its market cap jump into the top 10 of all cryptocurrencies. Now, early-year gains, and those same factors, mean an upward trajectory for the digital asset.
Although Polygon (MATIC) saw a lot of losses last year, it was headlined by a plethora of high-profile partnerships. Companies like Meta Platforms, Starbucks, Coca-Cola, JP Morgan, and Disney announced collaborative efforts with Polygon in 2022.
The meaning behind the partnerships were to help these various businesses utilize blockchain technology. Moreover, it put Polygon in a very unique position — as the guide for these very high-profile brands to enter into the digital asset space. Subsequently, the market value of MATIC only grew despite 2022’s horrendous circumstances.
Now, as the year has already shown tremendous gains, those partnerships are only added benefits. They show that the upward trajectory is only enhanced by the work done by Polygon in the last year. Specifically, why Polygon was chosen by these brands adds to the potential sustainability of its success this year.
The Benefit of the Polygon Blockchain
Motley Fool notes that Polygon’s selection of these brands was centered primarily around its blockchain capabilities. Compatible with Ethereum, the Layer-2 blockchain actually works to make the Ethereum network both faster and cheaper. Two factors undoubtedly pique the interest of brands and companies seeking to enter the space.
Ethereum can be both slow and costly, factors that Polygon combats. Through the utilization of its own blockchain, transactions are processed and added to the Ethereum network. Thus, it helps the speed of transactions and keeps cost down, while still maintaining compatibility with the Ethereum network.
These factors make it a sought-after technology and highly beneficial to the ecosystem. Moreover, it affirms why Polygon (MATIC) and its 2023 success are sustainable for investors. As Polygon continues work on technology that will help its blockchain cope with growth in its zk-rollups, the ceiling only gets higher.