3 reasons why I am buying this Crypto Hand Over Fist
The Polygon (MATIC) blockchain has made a name for itself in recent years, thanks in part to Ethereum‘s (ETH) ladder. Polygon is a layer 2 scaling solution for Ethereum. This means that Polygon helps make Ethereum more efficient, as Ethereum suffers from congestion and high traffic at times. Users flock to Polygon because it offers the security and decentralization of Ethereum, but with faster speeds and lower fees.
Polygon has a proven track record, but the future is what’s most exciting. Even with a brutal bear market gripping most cryptocurrencies, Polygon’s developers continue to create new solutions to support more and more use cases.
zk-What?
Arguably the most important development to come from Polygon is known as the zero-knowledge Ethereum Virtual Machine (zkEVM). This technological feat allows the Polygon blockchain to support additional use cases without sacrificing speed or cost.
Without getting too technical, zkEVMs make Polygon more versatile to support not only new smart contracts, but even old smart contracts originally written on Ethereum. These zkEVMs allow developers to migrate their Ethereum-based smart contracts to Polygon’s blockchain without having to rewrite any code. Developers may want to do this because Polygon offers the lower fees and faster speeds mentioned earlier. Additionally, a move to Polygon will not sacrifice any of the much-desired security and decentralization that comes with the Ethereum blockchain.
The zkEVMs are scheduled to go live in early 2023. Timelines in crypto are notoriously fickle — look no further than Ethereum’s proof-of-stake merger, which has been delayed multiple times — but zkEVMs could enable Polygon to reach a new level of usefulness, which may be worth waiting a few more months for.
Polygon pairs with Meta
Over the next few months, an increased number of users may begin to realize that Polygon offers a world of possibilities. Just a few weeks ago it was announced by Meta (META) CEO Mark Zuckerberg that Instagram will unveil NFTs to users in over 100 countries across Asia, Africa, the Middle East and the Americas. The plan is for NFTs from Solana (SUN), Flow (FLOW)Ethereum and — last but not least — Polygon to be compatible with Instagram.
Rather than being a marketplace to buy NFTs, users will be able to showcase and share their digital assets with followers. The NFTs will have basic information such as the creator, the name of the piece and the blockchain it was purchased on.
This is probably the most exposure Polygon NFTs have ever received. Now that Polygon has a presence in front of Instagram’s two billion users, hopefully more users will learn about the lower fees and faster transaction speeds compared to Ethereum.
Disney dabbles in crypto
As if the last month wasn’t good enough for Polygon, the blockchain caught the attention of one of the most famous companies in the world. At the end of July, Disney (HAZE) announced that the latest round of Accelerator program participants had been completed – and Polygon was one of them.
The Accelerator Program is a “business development program designed to accelerate the growth of innovative companies from around the world.” As one of six members who are part of this year’s class, Polygon receives investment capital, access to co-working spaces on Disney’s creative campus and mentorship support. Disney hopes that eventually a collaboration will emerge from these ventures.
Imagine what this could do for Polygon’s growth – and the price. Serving as the blockchain of choice for Disney could propel Polygon to heights we haven’t seen before. When you consider that zkEVMs are on the horizon, a looming presence with Instagram, and the possibility of teaming up with Disney — it seems almost too good to be true.
Despite being down nearly 70% from its all-time high, of all the other down cryptocurrencies, Polygon may have the most upside in the entire market. Even if Polygon were to only return to its previous peak of nearly $3, it would give investors a possible return of 300%. Nothing is guaranteed in investing, but if Polygon could reach that price before the associations with Instagram or Disney and the introduction of zkEVMs, imagine where it could go in the future.
Randi Zuckerberg, a former director of marketing development and spokeswoman for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. RJ Fulton has positions in Ethereum and Solana. The Motley Fool has positions in and recommends Ethereum, Meta Platforms, Inc., Polygon, Solana and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool has a disclosure policy.
