Polygon(MATIC)

Polygon, formerly known as the Matic Network, was created in 2017 by Jaynti Kanani, Anurag Arjun, Sandeep Nailwal, and Mihailo Bjelic. 

The project was designed to solve the various issues plaguing the Ethereum network (speed, cost, low throughput, etc.) and aims to provide a simpler framework for creating interconnected networks that improve Ethereum's scalability, efficiency and functionality without compromising on security.

The Matic Network was rebranded to Polygon in February 2021, but its native token is still referred to as MATIC. The network is classified as a Layer-2 solution for Ethereum and operates as a sidechain to improve speed and reduce the cost of transactions.

In 2021 Polygon launched Polygon Studios, a subsidiary of Polygon which focuses on non-fungible tokens (NFTs) and blockchain gaming.

Jaynti Kanani, who came up with the original idea for Polygon, serves as CEO of Polygon, with Ryan Watts resigning as Youtube's head of gaming to fill in the position of CEO at Polygon Studios in January 2022. 

MATIC price

The MATIC cryptocurrency went live in 2019 — two years after the Polygon network was founded. 

MATIC price in USD terms saw steady growth during 2020, but its biggest spikes came during 2021. According to our MATIC live price chart, the token went from under $0.02 to over $0.54 — a 3,070% increase — between Jan. 1 and March. 11, 2021.

The next big jump in the price of MATIC was seen between April. 18 and May. 18, 2021, where it went up more than 900% to set a new all-time high price of $2.7.

However, MATIC/USDT price fell sharply along with the entire crypto market in July of 2021, where it traded at $0.62 at the lowest point.

MATIC was seen gaining traction again in October of the same year, and after some price volatility, it managed to set another all-time high in December 2021, trading just above $2.92. At that point, MATIC’s fully diluted valuation reached $292 billion.

How MATIC works

Polygon is a Layer-2 network, which works alongside the Ethereum blockchain as a sidechain. Sidechains take a lot of the load off the main chain by processing transactions internally and only broadcasting snapshots to the original blockchain.

For developers, Polygon provides ease of migration by supporting EVM (Ethereum Virtual Machine), which allows code from Ethereum DApps to be seamlessly deployed on Polygon.

Unlike Ethereum, however, Polygon uses the proof of stake (PoS) mechanism where validators can stake MATIC tokens to validate transactions and upgrades.

MATIC news, updates, and highlights

Polygon saw a lot of success in early 2021 when the crypto market as a whole was peaking. In May 2021 U.S. billionaire Mark Cuban made an investment in Polygon, adding the India-based blockchain company to his portfolio. On Cuban's website, Polygon is referred to as “...the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development”. 

While the crypto market slumped by mid-year, MATIC's value soared again in December when the company announced that it would be unveiling a new Javascript library, dubbed MATIC.js. This pushed MATIC price to $2.4, setting a new six-month high. 

In December 2021, Polygon and Wanchain announced a strategic partnership to build a Layer-2-to-Layer-2 cross-chain bridge. By the end of December, Uniswap, one of the leading decentralized exchanges on Ethereum, had also launched a version on the Polygon network. This allowed users to swap tokens on Uniswap via the Polygon Layer-2 network, benefiting from cheaper and faster transactions. 

These positive announcements saw MATIC beating its previous max price by setting a new all-time high of $2.92 on Dec. 27, 2021.

Frequently asked questions about MATIC

• Can you mine or stake MATIC?

Since MATIC is a Proof-of-stake (PoS) token you cannot mine it. Instead, validators can set up nodes on the MATIC network and collect transaction verification rewards.

• What are some of the best MATIC wallets?

MATIC is supported by a variety of wallets, Trust Wallet and MetaMask being the more popular web wallets, and Ledger and Trezor among the best hardware wallets.

• What can you do with MATIC?

You can use MATIC for staking and paying for transaction fees or use it to govern and secure the Polygon network. MATIC can also be used to trade against other cryptocurrencies like Bitcoin and Ethereum.

• How do you buy MATIC?

Polygon (MATIC) can be bought by exchanging your BTC, ETH, or USDT through an exchange like HitBTC, or by using fiat currency on exchanges like Nexo or eToro.