A recent report by Bernstein on Friday recounted that the Polygon blockchain has emerged as a leading source for transitioning Web2 consumers into Web3, the new phase of the crypto world. It is no coincidence that the platform has been adopted by most leading companies in the likes of DraftKings (DKNG), Reddit, Starbucks (SBUX), NuBank, Robinhood Markets (HOOD), and the predominant Meta Platform, Instagram.
It is worthy of note that after Meta announced it would introduce a toolkit that’ll enable Instagram users to mint and sell only Polygon-powered non-fungible tokens (NFTs), there’s been a notable 30% surge in the blockchain’s native token MATIC.
Bernstein, in its comment, recounted that the Polygon blockchain had made some unique additions to its firm, which is hiring talents from large global technology firms such as Amazon, Airbnb, and YouTube. It further stated that it has its “business development strategies” to lend helping hands to consumer-heavy brands.
Technical analysts, Gautam Chhugani and Manas Agrawal, added that Polygon’s revamp of workers has fixed the company in a unique position to be the Web3 on-ramp for a wide range of users. According to them, the bullish price action of the MATIC token was a direct result of this factor.
They added that the market has notably favored the firm for building through the bear market. The Web3 space depicts the next generation of the internet that promotes and supports decentralized protocols to reduce total dependency on renowned technology companies.
However, Bernstein pointed out two criticisms against Polygon in their recent statement. First, there are claims that its current proof-of-stake chain is not a long-term solution because it is a side chain and has been quite parasitic to the Ethereum chain.
Polygon And The Ethereum Ecosystem
It has been observed that Polygon has made strategic and smart acquisitions during the fiscal year. These acquisitions entailed numerous teams who notably built zero-knowledge layer-2 in-demand products (ZK-rollups) on the Ethereum blockchain.
There has also been a working live solution for ZK-rollups built by Polygon during the current bear market awaiting launch. These unique inventions have kept Polygon top of the list and also allowed them to overcome most tech misfortunes.
Thus, enabling a long-term scalable platform that promotes a Web2-like scale. Polygon was built as an Ethereum virtual machine-compatible firm. However, it still allows using standard Ethereum language and tools and pivots Ether (ETH) as the gas fee across its platform.
The crypto platform has so far had several successful step-ups starting from the potential cannibalization of the Ethereum blockchain to being a commendable scaling platform. Thus, it brings additional benefits to the Ethereum ecosystem. Notably, the success of Polygon is observed to be tied to the Ethereum blockchain.
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