Polygon: When Will MATIC EXPLODE?? 💥

as ethereum gas fees continue to climb so too has the demand for low-cost layer 2 scaling solutions the total value locked on all ethereum layer 2s recently surpassed 10 billion and is showing no signs of slowing down polygon accounts for half of this amount and recently managed to briefly overtake ethereum by daily active users today i'm going to give you a quick recap of polygon bring you up to speed on what the project has been up to and why the matic token might be moments away from a moon shot [Music] there are two things you need to know before you watch this video first there is nothing but entertainment and education in today's show please contact a financial advisor if you start to feel the fomo second i hold polygons matic token as part of my personal cryptocurrency portfolio if you want to know what other coins and tokens i hold you can subscribe to my weekly newsletter using the link down below if this is your first time in this corner of the tube my name is guy and crypto is what i do the coin bureau is home to some of the highest quality crypto content on the internet coins tokens news and reviews explained in a way that you won't forget if this is the kind of content you want to get subscribing to the channel and pinging that notification bell is your best bet if you're short on time move your cursor across the video timeline and feel free to skip ahead to any interesting topics you find just remember that sticking around is a great way to grow your mind now i know my disclaimers are fantastic but it's about time we got started with polygon and matic if you've never heard of polygon before here's what you need to know polygon was founded in 2017 by anurag arjun gianti kanani and sandeep nailwhile polygon was originally called matic network and esteemed ethereum developer mahalo gelek was added as a fourth co-founder following the rebrand 2 polygon in february 2021 polygon was built by polygon technologies a for-profit software company based in india polygon's development is coordinated by the matic foundation a non-profit which presumably rebranded to the polygon foundation it's not clear where the polygon foundation is based polygon raised 5.5 million dollars across various token sales in 2019 and has since raised millions of dollars from well-known individuals and institutions polygons mainnet went live in june 2020 though polygon is still technically in development this is because polygon seeks to be quote ethereum's internet of blockchains and is building additional scaling solutions to this end although two of polygon scaling solutions are currently live the only one that's currently usable is the original matic network which is now called the polygon pos chain the polygon pos chain uses an ethereum scaling technology called plasma which basically involves creating a copy of the ethereum blockchain that leverages the actual ethereum blockchain for security this is done by periodically submitting a snapshot of the polygon pos chain to the ethereum blockchain these snapshots are submitted by polygons 100 validators and they can be used to recover user funds if polygons pos chain ever goes down note that polygons 100 validators do not actually process transactions on the polygon pos chain this is done by a second set of 7 to 10 block producers who are likely operated by the polygon foundation this relative centralization allows polygon to process up to 65 000 transactions per second though polygons own sources note that polygon can currently process 1 to 10 000 transactions per second now matic is an erc20 token on the ethereum blockchain it's used for staking by the 100 validators on the polygon pos chain and delegation is also possible matic's staking rewards are currently around 12 percent per year for both validators and delegators while there is no minimum stake for either entity validators must be staking enough matic to make the top 100. any staked matic tokens are subject to a 21 day lockup and any misbehaving validators will see a portion of their stakes slashed the matic token is also used to pay the sub-zero fees on the polygon pos chain and will be used to pay the sub-zero fees for polygons upcoming scaling solutions polygons low fees and ethereum compatibility have seen some of ethereum's most popular d5 protocols launch on its pos chain these now hold close to five billion dollars in total value locked if you're interested in using popular ethereum dapps without paying gas out the ass you can check out my polygon tutorial using the link in the top right it's been almost nine months since my last polygon update and it's safe to say that a lot has happened since then shortly after that polygon update went out ave announced that it would be launching on ethereum's leading layer 2 something that i predicted just saying now the rv protocol deployed on polygon in april and this is believed to be one of the primary drivers behind the 10x increase in polygon users in the first half of the month at the end of april polygon announced a 150 million dollar d5 fund which will see two percent of matic supply set aside for liquidity mining rewards for promising d5 protocols over the next two to three years in may billionaire mark cuban announced his support for polygon though it's not clear how much money he personally invested into the project the next day polygon announced the completion of the polygon sdk which makes it possible to create ethereum layer 2s and standalone blockchains with minimal effort the day after that polygon integrated with trustless cross chain protocol ren making it possible to mint more than half a dozen wrapped crypto currencies on polygons pos chain including btc doge and luna now if this hat trick of bullish news wasn't enough polygon also announced an integration with google's big query platform making it possible for developers to easily analyze data on polygons pos chain in early june polygon partnered with au21 capital to launch a 21 million dollar fund for polygon developers polygon also announced the release of polygon scan a blockchain explorer for polygon's pos chain built with the help of etherscan ethereum's most popular blockchain explorer in mid-june grayscale revealed that it was considering creating trusts for 13 cryptocurrencies including polygon the greyscale polygon trust has yet to materialize but it's probably only a matter of time given that greyscale recently created a trust for solana which was part of the same batch of cryptos under consideration at the end of june polygon unveiled avail a quote robust general purpose scalable data availability layer now as far as i understand avail can be used to improve the security of both public and permissioned blockchains though i must admit the explanation as to how it does this flew over my head the next day polygon announced that the sandbox would be migrating from ethereum to polygons something which seems to have happened recently you can learn more about the sandbox by using the link in the top right in mid-july the coinbase wallet added support for polygon's pos chain polygon also launched its own nft and blockchain gaming studio called polygon studios complete with a 100 million dollar fund at the end of july binance added support for polygon's pos chain making it easy to withdraw select erc20 tokens directly onto ethereum's leading layer 2. in mid-august polygon announced that it would be allocating 1 billion worth of matic tokens towards the development of zero-knowledge scaling technologies that same day polygon revealed that it had acquired hermes network for 250 million matic tokens worth 250 million dollars at the time of the agreement as you might have guessed hermes is a layer to scaling solution for ethereum which leverages zero knowledge technology according to hermes documentation its zk roll ups can handle 2 000 transactions per second which is not too shabby at all at the end of august polygon announced its plans for a polygon ecosystem dao which will give the polygon community some power over the direction of the project in early september coinbase announced that it will be using polygon as its go-to scaling solution for everything ethereum coinbase also hinted that it would be adding support for the polygon pos chain though this has yet to occur at the time of shooting in mid-september polygon announced a partnership with ernst young to deploy a privacy focus scaling solution for ethereum using zkrollups now for those who don't know ernst young is one of the big four accounting firms put simply it's a very big company at the end of september osprey announced the osprey polygon trust for accredited investors in the united states crypto.com also added support for the polygon pos chain and all this news saw polygon's active user count briefly surpass ethereums in early october nft marketplace openc announced its polygon deployment now openc is of course the most popular nft marketplace in cryptocurrency at the end of october bitwise followed in osprey's footsteps by launching a polygon fund for institutional investors a bug on polygons pos chain was also caught and corrected now this bug could have cost users 850 million dollars in crypto good job that exploit never happened now in mid-november polygon announced maidan another ethereum scaling solution based on zero knowledge proofs in contrast with hermes maiden features a more elaborate zero-knowledge technology called zk starks which i won't even try to get into here the main takeaway on maidan is that it will feature its own virtual machine which will be compatible with the ethereum virtual machine this should make it possible for maiden to support more complex smart contracts than ethereum did i mention that maidan was developed by facebook's former zero knowledge researcher everyone's just jumping ship from that company these days huh anyways at the end of november the nfl announced that it would be issuing nft tickets on polygon's pos chain polygon also announced an integration with arweav a crypto project that makes it possible to store data in a decentralized manner forever now i happen to hold some ar as well and that's because r weave actually stores solana's blockchain history you can get my most recent solana update using the link in the top right all of polygons announcements and developments have had a predictable effect on the price of matic which has basically been parabolic since march however if you run the numbers matic is only up around 6x since that time this is less than what many other cryptocurrencies have seen during the same period and this is for one simple reason and that's cell pressure the primary source of cell pressure is probably matic's vesting schedule as you can see every six months a massive amount of matic is being unlocked matic's vesting schedule seems to correlate closely with matic's price action matic has historically seen a drop in price after every vesting cliff and the most recent one took place on november the 5th this means that polygons early investors are selling their matic which makes sense when you consider the fact that matic's most expensive ico price was a quarter of a cent that's close to a 1 000 x return on investment now luckily most of thematic set aside for polygons early investors seems to have vested already most of thematic tokens that have yet to vest are going to the polygon team and the polygon foundation as you might have gathered from the updates i mentioned earlier the polygon foundation has spared no expense when it comes to funding the expansion of polygon's ecosystem now most if not all of this money is coming from the polygon foundation's sales of thematic token and if my calculations are correct it has sold up to half a billion dollars worth of matic since march not only that but in an october presentation polygon's head of institutional investment dean thomas said quote if you want direct investment from us we are now capable of cutting checks directly from our foundation suggesting that the foundation has sold even more matic than meets the eye but what about the demand side of this supply and demand equation according to polygon scan statistics there are over 120 million unique addresses on polygons pos chain to put things into context that's an almost 1 000 x increase since march which is insane the problem is that the total value locked on polygon's pos chain topped out in late june and has been holding steady at around five billion dollars ever since this suggests that all the new wallets being created on polygons pos chain are coming from people signing up for exchanges and wallets with polygon integrations such as binance and the coinbase wallet the bigger problem is that the number of daily active wallet addresses on polygons pos chain has been stagnant since october and even seems to be on the decline this could be from competition from other layer 2s such as arbitrary and optimism which have seen their own exchange integrations and billions of dollars in total value locked in popular ethereum protocols the good news is that polygon is still the largest layer 2 on ethereum by a wide margin and you can learn more about ethereum's layer 2 landscape by clicking the link up there in the top right now if you're wondering how high matic could go before this bull market ends a conservative estimate is another two to three x matic's massive market cap means it's unlikely to grow much larger than that that said it is possible that matic could manage to make an even bigger move and this ultimately depends on polygon's road map polygon's roadmap was revealed in a recent presentation by polygon co-founder sandy nailwell it looks like there are only five milestones which have yet to be met and these are the launch of the aforementioned avail chain the launch of the aforementioned nightfall roll-up scaling solution the launch of a yet to be announced optimistic roll-up scaling solution the introduction of application-specific side chains for ethereum and the introduction of enterprise chains which can leverage polygons pos sidechain for security the polygon team is aiming to have all these chains up and running by early 2022 which happens to coincide with when many people believe the top of the crypto bull market will be in the q a after sandeep's presentation he noted that polygon's end game is to be the third biggest cryptocurrency after bitcoin and ethereum in terms of numbers sandeep hopes polygon will have at least 100 million daily active users and billions of total users in the coming years which he admits is an ambitious target to do this polygon will need to provide quote solana-like scalability on ethereum which validates another one of my crypto holdings when asked about whether coinbase will integrate with polygon and even use it for its nft marketplace sandeep said he couldn't comment on that which obviously means it's going to happen additional milestones for polygon can be found in the actions interviews and presentations made by other members of the team in a november interview dean thomas said that there will be a few more institutional investment vehicles listed on exchanges around the world in the coming months dean is also focused on securing polygon partnerships with crypto projects and companies primarily in the nft metaverse and game fine niches in late november polygon co-founder mikhail bielik tabled a proposal on uni swap's governance forum to deploy ethereum's most popular decks on polygon this proposal passed on december the 2nd with 98 of respondents voting yes with their uni meaning we should see uni-swap deploy on polygon any day now possibly by the time this video hits the tube the final polygon milestone i could find comes from a may interview with polygon co-founder gianthi kanani in it he pondered the possibility that the matic token could be renamed to something more polygon related in the future jayanthi also explained that polygon makes its money through sales of thematic token echoing what sandeep said in a march interview quote we are using that treasury to build the ecosystem now this brings me to the concerns i have about polygon my first concern is the constant selling of the matic token by the polygon foundation and polygon team which has clearly had a negative impact on matic's price in polygon's defense it has no choice but to spend as much as it can to expand as quickly as it can because when matic staking rewards run out in 2025 the only thing that will incentivize validators to secure polygons pos network is transaction fees even so it would be nice to know just how much matic the foundation and the team are spending to my knowledge this information isn't available anywhere but i will applaud polygon for labeling a few of its wallets on etherscan now this ties into my second concern and that's transparency funnily enough polygon has a transparency page but the only thing it lists is the wallet addresses that are already labeled on etherscan what i would like to know is who runs the 7 to 10 block producing nodes on the bore layer of polygons pos chain since these nodes could potentially present a single point of failure for polygon side chain i also find it a bit concerning that polygons founders did not detail the boar layer during their recent presentations and interviews instead implying the entire time that polygon is decentralized because of the heimdal layer of the pos chain besides the fact that the heindel layer of polygon's pos chain only has 100 validator nodes it's quite clear that polygon is still the one calling the shots and that's my third concern about the project even though polygon did announce a community dow it has yet to put together a governance structure of any kind and there has apparently been no mention of these plans anywhere else the closest thing i could find that resembles community governance is the governance section of the polygon and matic network forums which have not seen very much activity the only proposal worth pointing out relates to addressing the fact that the top 10 validators on polygons pos chain account for over 80 percent of the stake which is quite concerning now to be fair polygon seems to be aware of these issues and decentralization appears to be at the forefront of co-founder sandy nailwell's mind concerns aside there is no question that the adoption of polygons pos chain is on the rise and there are some very exciting updates coming down the pipe that will increase the demand for matic and i'm confident that polygon will solve these and other issues in due time this is why i bought the dip on matic in the recent crypto market crash and if you want to do the same with your favorite cryptos when the next crash comes round be sure to check out my buy the dip tutorial in the top right and that's all for today's polygon update if you enjoyed the video folks be sure to smash that like button if you want to make sure you get the next one subscribe to the channel and ping that notification bell if you haven't already if you've already seen all the videos this channel has to offer you should know that i have a second channel called coin bureau clips where you can peek behind the scenes if you've already watched all the videos on that channel too follow me on twitter tiktok and instagram to stay educated and entertained you can also join my telegram channel for juicy crypto updates and subscribe to my weekly newsletter to see my personal crypto portfolio and how i adjust it from week to week last but not least there's the coin bureau merch store where you can buy some seriously comfortable crypto themed hoodies sweaters and tees it's not too late to get your christmas shopping in and if you buy before december the 12th you'll also be entered into a competition to win some secret crypto gifts more info about all that can be found on instagram and tick tock and you can find the links to everything i just mentioned in the description thank you so much for watching everyone it's been fun but i've gotta run i'll see you all very soon [Music] you

Channel: Coin Bureau

Views: 363,691

Keywords: Polygon, MATIC, Plasma, Ethereum, Sidechain, Layer 2, Cryptocurrency, Scaling, Hermes, Rollups, Matic Network, ERC20, Arbitrum, Defi

Id: OECcDsmmhRg

Length: 22min 3sec (1323 seconds)

Published: Thu Dec 09 2021

Reddit Comments

[u/AutoModerator]

Thank you for your submission to r/0xPolygon

If your item is a question we also suggest that you ask it in our daily discussion thread to increase your chance of it being answered. Many other general/common inquiries can typically be answered here in our Getting Started with Polygon Guide.

Please also be sure to check out the sidebar to follow the project on your desired social channels.

Please note if your post is discussing price, promoting a personal NFT project, or generally low effort it will be removed. Please direct these posts to the daily discussion thread as well. If you have any questions, concerns, or would like any additional information added to the Getting Started Guide post above please be sure to send a message to the mod team.

---

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

[u/BASEbelt]

Can I get a TLDW summary. I’ll watch later but the wife is sleeping nearby

[u/Stereo-Gito]

Paid shill but yeah Matic has a great future

[u/nousemercenary]

Feelin bullish