Here’s my crypto MVP for 2022

The past year has been a tough one for cryptocurrency investors. This asset class hit an all-time high of nearly $3 trillion in November 2021, but has since lost about 70% of its value. Some correction may have been inevitable after the crypto craze of 2020 and 2021, but the correction was exacerbated by a series of controversial events that led many investors to lose faith in the industry. lost.

But despite numerous bankruptcies, mass layoffs, and the complete depreciation of some cryptocurrencies, 2022 wasn’t all bleak. What has surprised some is that one cryptocurrency has had a phenomenal year.

Its price does not necessarily reflect its level of success, but could be a result of ongoing macroeconomic factors. polygon (matic 0.21%) Earned my status as my Crypto MVP for 2022. Despite its price dropping nearly 70% year-to-date, it remains resilient compared to other cryptocurrencies. While that price may sound like bad news to investors, Polygon’s market cap has ranked among the top 10 market caps of all cryptocurrencies during crypto winter.

But for Polygon to remain resilient, investors must have had reason to be optimistic about the increasing value of its blockchain. The list of reasons for that is long.

Top companies rely on Polygon for new business models

Anecdotally, Polygon may have the most corporate partnerships this year among any cryptocurrency. The list of companies is huge. All of them used Polygon in slightly different ways, but demonstrate the versatility of blockchain to serve the different needs of companies seeking unique ways to utilize blockchain technology for new applications. increase.

While it is not possible to detail every partnership, Polygon’s list of companies that have begun using it for non-fungible tokens (NFTs), decentralized financial exchanges, etc. includes common names such as: increase. Nike, disney, meta, coca cola, JP MorganWhen Starbucks.

But more importantly, it’s why these companies chose Polygon as the blockchain to start their blockchain efforts. Polygon does one particular thing very well. ethereum (ETH -0.03%) Faster and cheaper to use.

symbiotic partnership

Over the last few years, Ethereum has emerged as one of the most popular blockchains. Its smart his contracts are used to program decentralized applications, NFTs, lending protocols, etc. Due to its wide usage range, Ethereum can get bogged down with traffic. Increased blockchain traffic can slow speeds and skyrocket the cost of settling transactions. But with Polygon all this is a thing of the past.

Ethereum is popular not only for smart contracts and a wide range of use cases, but also for security and decentralization. Companies like the ones above want to go with Ethereum, but it can be a little expensive, and Polygon helps mitigate this. This is much cheaper by processing transactions in bundles instead of one by one and adding them to the Ethereum blockchain later.

These companies using Polygon do so for one main reason: compatibility with Ethereum. As such, Polygon has become the most viable option for businesses wanting a more cost-effective blockchain, but still looking for the popularity, decentralization, and security advantages of Ethereum.

probably just the beginning

There’s a lot of optimism that Polygon will continue beyond 2023. Unlike other blockchains that have had massive layoffs, Polygon has seen a surge in hiring this year. Additionally, there are plans to make blockchain even faster and cheaper to use. A technology known as zkEVM could bundle transactions in a more streamlined way and bring more businesses to blockchain.

Given its low price, long list of 2022 achievements, and future potential, all cryptocurrency investors looking to capitalize on the wave of companies deciding to move their operations to the blockchain should consider Polygon. I think it should be prioritized. Of course, that’s not to say it will return to all-time highs next month or by the end of 2023. Join the blockchain competition.