NEW DELHI (CoinChapter.com) — Polygon, an Ethereum scaling solution, might enter the list of the top 3 cryptocurrencies by the end of 2023. The blockchain platform has aggressively expanded its partnerships ecosystem, adding bullish cues for its token, MATIC.
Interestingly, Polygon did not let 2022’s bearish market conditions foil its ecosystem expansion plans. The Layer-2 scaling solution currently has fingers in pies ranging from Web 2 and Web 3 to DeFi and TradiFi. Polygon’s on-chain data further support the bullish outlook for the platform.
Crypto analyst Coinsider shared a similar sentiment in a YouTube video but warned that the outlook is not completely positive. The analyst cited rumors of Polygon selling MATIC tokens at a discount to private investors to raise more cash, suggesting a possible liquidity issue for the blockchain platform.
1. zkEVM Could Push Polygon Higher
Polygon might become one of the first firms to launch a Zero Knowledge Ethereum Virtual Machine (zk-EVM) that would be EVM (Ethereum Virtual Machine) compatible straight out of the box.
In detail, Zero-knowledge proofs confirm the truth of a statement without sharing the statement’s content or the verification method.
An EVM for Polygon’s ZK rollup would help developers smoothly move smart contracts from Ethereum to Polygon. Some older versions of Zk-rollups failed to execute some operations necessary for smart contracts. A zkEVM would help resolve the issues.
ZkEVM’s are nearly 100 times faster than normal EVM and are 90% cheaper in gas. Crypto analyst Miles Deutscher stated a sustained rally would likely “occur closer to (and post) the launch of ZkSync, Polygon zkEVM, and StarkNet.“
In addition, Polygon introduced a new product called the Polygon ID solution, which would help developers bring a decentralized identity system to dApps. The Polygon ID depends on the zk-proofs that help user identification without compromising data security.
Developers might leverage the new Polygon ID toolset to introduce features like improved signup UI, help in regulatory compliance, and provide structured user access to specific features.
Polygon’s Partnerships Galore
Meanwhile, Polygon has made strategic partnerships across different sectors, both crypto and non-crypto.
Messaging platform Reddit recently leveraged Polygon’s blockchain for its Collectible Avatars NFTs. The project was seemingly successful, with Reddit ending up with over 3 million NFT wallets by Nov 2022.
In Sept 2022, Starbucks tapped Polygon as its blockchain partner for launching its Web3 experience, Starbucks Odyssey.
Sports giant Nike launched a new platform—called Swoosh—to enhance its presence in the Web3 world. Nike would use the platform to launch virtual apparel like t-shirts and sneakers for avatars in the metaverse. In addition, the platform would use Polygon to mint its NFT apparel.
After the near-collapse of Solana due to the FTX fallout, NFT projects, DeGods, and Y00ts, announced that they will migrate to other blockchain platforms in 2023, with y00ts choosing to migrate to Polygon in early 2023.
Additionally, Hamilton Lane, an investment firm with nearly $830 billion AUM, partnered with Securitize’s tokenization platform on the Polygon network to give access to individual investors. Hamilton would provide individuals access to a part of its Equity Opportunities Fund V via a new Securitize feeder fund.
The above are just some of the partnerships that Polygon has formed over the past year.
2. On Chain Data Highlight Polygon’s Progress
Polygon’s partnerships across sectors have helped its ecosystem grow, with the blockchain surpassing the BNB chain in daily transactions on Jan 30, 2023.
At present, Polygon transaction volume is snapping at the heels of Binance Chain. Moreover, the blockchain platform has already surpassed Ethereum in terms of transaction volumes.
In addition, Polygon witnessed increased NFT activity, with weekly volumes on Polygon marketplaces rising since Oct 2022. Recently, Shemaroo announced the launch of its NFT marketplace on the Polygon network.
The NFT volumes on Polygon surpassed those on Ethereum in Dec 2022 and Jan 2023. With zkEVM about to launch, it might be possible that several projects migrate to Polygon. ZkEVM is compatible with existing EVMs, as a result, developers would not have to modify the project’s code.
Moreover, Polygon’s existing partnerships might entice projects to choose the blockchain to access its ecosystem.
3. What Could Propel Polygon In 2023
Polygon’s zkEVM might arguably be its hottest product to launch in 2023, at least for now. Launching on Mar 27, the zkEVM might help Polygon forge new partnerships and form new use cases. Moreover, several new projects on Polygon have a launch date in 2023.
Meanwhile, Lens Protocol, a blockchain-based social graph platform, launched on Polygon. Unlike Web 2 social media platforms, Lens Protocol is permissionless and helps creators and users to “own” the connections between themselves and the communities.
Rumors of an airdrop of Lens Protocol tokens could act as a bullish cue for Polygon’s MATIC token. An airdrop would help increase activity on the Polygon blockchain.
A Delhi-based Markets writer, I did my bachelor's in engineering with major in electronics and communications. I first heard of bitcoin while writing an article about blockchain technology a few years back, and have been following it ever since. Bitcoin may well be current big thing happening in the finance industry, and it feels like the right time to join the crypto bandwagon.