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Polygon (MATIC) Fights for Relevance Amid Growing L2 Competition

Wed, 01/04/2023 - 12:31
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Godfrey Benjamin
Polygon (MATIC) is unfazed by competition L2 protocols might pose this year
Polygon (MATIC) Fights for Relevance Amid Growing L2 Competition
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Many digital currencies have had a stellar start to the year, and Polygon (MATIC) is pushing for new frontiers to be tagged among the high flyers. As reported earlier by U.Today, Polygon's price went green, inching into 2.3% growth as of Monday, as Ethereum whales added the token to their top picks.

At the time of writing, Polygon is also on the rise, bouncing by 2.35% to $0.8004. According to its on-chain metrics, Polygon has been recording highly impressive retail accumulation, with trading volume up 67.23% over the past 24 hours.

For Polygon, tagging among the most profitable tokens in the year-to-date (YTD) period is a very big deal for sustaining trust in its ecosystem. This is even more necessary as all eyes are on the advances that most Layer 2 protocols on the Ethereum blockchain will showcase this year.

Ethereum co-founder Vitalik Buterin has already highlighted how he plans to advance work on roll-ups this year. Amid this threatening competition to its core offering, Polygon needs to be able to expand its own scaling capabilities to maintain its ecosystem functionality and growth.

While it might be too early to highlight significant development work on the L2 protocol, its token growth, when compared to its peers, represents solace for its ecosystem to hang onto.

Regaining lost price

Drawing on the susceptibility of the Polygon (MATIC) token to the crypto winter of last year, there are significantly high price milestones to cover. With MATIC being down by 72.5% from its all-time high (ATH), the coin still has an ample valuation to regain, seeing it has slumped by more than 67% in the past year.

Despite this seemingly arduous milestone ahead, Polygon is one of the most renowned and functional protocols that support dApps. With a growing embrace among Web 3.0 builders of the targeted protocol upgrades it introduces, the protocol is arguably on track to compete this year.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.