Polygon: Epiphenomenon or Long-Term Growth?

Although the cryptocurrency market is currently undergoing a significant correction, the Polygon project has been facing resistance over the past several days. Despite a dramatic decline on this day, Polygon is still one of the few projects that has improved over the last seven days. We'll work together to see if there's a chance for long-term development.

Polygon is a scalability-focused project. The Polygon project, formerly known as the Matic Network, is built on an Ethereum token. The project's aim is to make transactions quicker and less expensive than on Ethereum. For this, Polygon employs Layer 2 sidechains. There are blockchains that can be used in conjunction with the Ethereum blockchain.

You'll note that Polygon is attempting to make its project appealing from the standpoint of scalability. Scalability refers to a protocol's or a product's ability to adjust to a shift in use of an order of magnitude. It is about providing the possibility of significantly raising the amount of transactions in the form of cryptocurrencies. The general public is gradually using these properties as a form of payment.

Good to know: The Polygon project's developers claim that the blockchain can handle over 60,000 transactions per second.

A Polygon token is currently worth $ 1.81 at the time of publishing. That is, there has been a 55 percent rise in the last 7 days but a nearly 12 percent decrease on May 19, 2021. A decline that has affected the entire cryptocurrency industry, led by the price of Bitcoin plummeting dramatically. The most well-known virtual currency has seen its price drop by nearly 25% in the last 24 hours.

The Polygon blockchain protocol is based on the Proof of Stake theorem (PoS). This project does not allow for mining, and the maximum number of tokens in circulation is set at 10 billion. 6.15 billion tokens are currently in circulation.

The project currently has a market capitalization of about $ 1.8 billion. It was ranked among the top 20 most valuable companies by market capitalization.

What is the best way to invest in the Polygon project?

You can use the services of an online broker to invest in cryptocurrencies. You can invest in other crypto ventures as well as other asset classes such as bonds, stock market indices, and even commodities through an online broker. Some brokers also have the option of investing in ETFs or bonds. Providing all traders with the ability to build a true portfolio diversification plan.

It's a good idea to use technical research software before investing in a project. For many days, the entire cryptocurrency market has been in free fall. On this day, May 19, there was an especially noticeable pattern. As a result, looking for the first signs of a recovery might be interesting. The trader can do this by using a variety of trading indicators.

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