Why is MATIC trending as a potential investment opportunity?

What is Polygon mainnet? Why is it changing the blockchain world

If you’ve ever wondered why MATIC has attracted so much investor interest, the answer lies within the Polygon network itself.

Polygon (formerly known as Matic Network) is a blockchain network designed to solve key issues of Ethereum—slow speed, high fees, and network congestion. Simply put, Polygon is a Layer 2 solution that makes Ethereum faster and cheaper to operate.

MATIC is an ERC-20 token that functions as the fuel of the Polygon network. It is used to pay transaction fees, validate transactions, and participate in network governance.

What Thai investors in MATIC need to know

Since Polygon gained popularity, the price of MATIC has not only surged—it has soared. It has experienced many rapid increases and equally quick declines. Therefore, before investing, it’s important to understand some key points.

Advantages:

• Fast transactions: average 2.1 seconds, compared to Ethereum which takes longer
• Low fees: sometimes less than $0.01 per transaction
• Supports many applications: DeFi, NFT, gaming—all run smoothly on Polygon mainnet

Disadvantages:

• Dependent on Ethereum: if Ethereum faces issues, Polygon will be affected
• Limited utility of MATIC: primarily used for fees and governance, not for general purposes

Who created it and what are their goals?

Polygon was founded in 2017 by Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic—an Indian pioneering team. In India, they knew well that Ethereum was slow and expensive, so they decided to build a bridge connecting applications to the Ethereum network.

Their ultimate goal? To enable Ethereum to support 1 billion users without sacrificing security or decentralization.

How does Polygon mainnet work? Do you really need to understand it?

Polygon uses a Proof of Stake (PoS) system—network validators (who oversee the network) must lock their MATIC tokens to earn the right to validate transactions and receive rewards. If they cheat, their tokens are slashed.

The clever part is Polygon Bridge—this bridge allows you to transfer funds securely from Ethereum mainnet into Polygon. Once the funds are in, transactions become much cheaper and faster.

DeFi apps that make Polygon rich

On Polygon mainnet, many apps are just as good as those on Ethereum:

• SushiSwap: decentralized token exchange
• Curve Finance: for stablecoin trading
• 1inch: finds the best liquidity for you
• Aave: borrow crypto yourself
• QuickSwap: a DEX on Polygon with very low fees

Polygon vs. Ethereum—who wins?

Ethereum remains the king (ranked #2 after Bitcoin), but Polygon is in a good position. Or both are connected—Polygon is a way to make Ethereum work better, not to let it win.

Ethereum uses Proof of Work (but is transitioning to PoS), while Polygon already uses PoS, making transactions faster.

MATIC price at the end of 2023 and future outlook

Crypto analysts have examined the data and made predictions:

October 2023: average price around $0.77 (with lows of $0.73 and highs of $0.81)

November 2023: price increased to $0.84 on average (with lows of $0.76)

December 2023: year-end close at $0.82, (with lows of $0.79 and highs of $0.87)

2024 forecast: analysts estimate MATIC could reach between $1.15 (minimum) and $1.37 (maximum), with an average around $1.18.

Should you buy MATIC now?

In reality, MATIC’s price is still very volatile, which is not suitable for short-term traders. But if you’re a “buy and forget” type, over 3-5 years, the trend might look quite promising.

However, always keep an eye on news from the Polygon team—whether they will upgrade or launch new initiatives—because Polygon mainnet still has growth potential.

Most importantly: invest with understanding, not just following the crowd. Always do your own research (Do Your Own Research)!