Ethereum investors have been keen on the new anticipated developments on the Ethereum platform. However, the much-anticipated Ethereum merge will greatly affect, not only the ETH token, but the tokens of platforms on it, like Polygon Matic. Cryptocurrency tokens, such as MATIC, are closely correlated with the Ethereum blockchain‘s performance. The long-awaited merger would see the Ethereum blockchain moving from the PoW consensus mechanism to the coveted PoS, arguably environmentally friendly.
The Polygon MATIC recently announced that the new developments on the Ethereum blockchain would mean good news for the Polygon platform. In their announcement, through their blog, the Polygon team assured its investors that the change would mean improved security, a reduction in gas fees for Polygon to a significant degree, 99.5%, and a potential increase in transaction speeds.
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New developments on Polygon (MATIC)
Polygon MATIC is essentially a scaling solution on the Ethereum blockchain. Fundamental improvements on the Polygon MATIC would positively impact the Ethereum blockchain and vice versa since it is a solution that ensures the efficiency of the Ethereum platform. Let’s look at how the Merge aligns with some of the recent developments on the Polygon platform.
Are you familiar with Polygon’s zkEVM? The “zk” stands for Zero-Knowledge, while EVM is an acronym for Ethereum Virtual Machine. The recently unveiled technology is a game changer for Polyygon and Ethereum, especially after the Ethereum Merge, which will have the Beacon Chain and its validators become the backbone of the blockchain network.
The zkEVM is a technology that significantly improves the performance of the Ethereum blockchain by increasing the speed, number, and efficiency of transactions on the platform.
Why is Polygon (MATIC) a unique beneficiary of the Merge?
Polygon’s future is uniquely intertwined with that of the Ethereum blockchain. It is often referred to as a scaling solution for the Ethereum blockchain since it enhances its performance. Since Polygon employs the Proof of Stake mechanism, unlike the Ethereum blockchain, it ensures its users navigate the exorbitant gas fees often experienced on the Ethereum mainnet.
However, the anticipated Merge ensures an even closer symbiotic between these two. For instance, the transition from the Proof of Work mechanism to PoS by the Ethereum blockchain is anticipated to fix a huge carbon footprint on the Ethereum blockchain.
How does this impact Polygon?
Impact of Ethereum merge on Polygon (MATIC)
The transition will fix a massive carbon footprint, improving Ethereum blockchain security. Since Polygon’s security relies heavily on the Ethereum blockchain’s security, any positive growth on the platform positively affects the performance of Polygon and its native token, MATIC.
As we anticipated the Merge, the MATIC cryptocurrency is expected to be one of the primary beneficiaries. MATIC crypto holders anticipate an increase in demand for the token since the Merge improves the overall performance of Polygon. MATIC has risen by 6.30% today and continues to pick up the bullish momentum ahead of the anticipated Merge.
Polygon is a crucial layer 2 solution on the Ethereum blockchain. Since its applications are directly related to the Ethereum network, the much-awaited Merge will undoubtedly ensure an increase in demand for the token, which will result in a significant rise in its market price.
Eager to learn more about protocols they are developing? By reading through the entire suite of scaling solutions, you can find out information about Polygon zkEVM, Polygon Avail, and more. The information will be instrumental in determining the future of MATIC cryptocurrency.
Source: https://www.cryptopolitan.com/ethereum-merge-matic-holders-and-investors/