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As the anticipated Ethereum migration to Proof-of-Stake from Proof-of-Work nears, expectations about the transition’s effect on specific cryptocurrency projects have emerged. Some could enjoy lucrative outcomes from this switch.
However, others might endure negative consequences, and the Ethereum-based Polygon (MATIC) could be among these. Reacting to the debate of potential impacts, Polygon confirmed there is almost nothing to worry investors about.
Decent Vibes Only
The statement from Polygon’s official blog stated that Merge would only unveil lucrative news about its network. Precisely, the web3 infrastructure said that the effect would be an environmental-friendly scaling solution. However, how would the Ethereum Merge impact this possible scalability?
Though the transition may not decrease gas fees for Ethereum, Polygon believes such a possibility for MATIC. Citing a potential 99.5% energy consumption reduction, Polygon encouraged its investors to expect increased transaction speed plus cheaper fees.
Another facet of the news was the probable security infrastructure improvement of the Polygon blockchain. It stated that the Merge fixes Ethereum’s massive carbon footprint, beefing up ETH’s security, and alleviating Ethereum inflation. Meanwhile, Polygon benefits from improved security plus general Ethereum ecosystem growth.
Polygon isn’t the only one to benefit from the Merge. ETH would also acquire improved scalability from Polygon because if its zkEVM (zero-Knowledge Ethereum Virtual Machine. Meanwhile, the Merge will likely drive Polygon towards its goal of being the dominant ecosystem for Dapps (decentralized applications) development.
The carbon-free crypto project noted these opinions. However, to what state does the update leave Polygon’s native token MATIC?
More, Probably Less
The debates about positive expectations from the Merge might also trigger potential upswings for MATIC. Nevertheless, enthusiasts might need to wait as the current outlook isn’t encouraging.
Though MATIC’s price explored the $1.04 territory on August 14, it plunged to trade at $0.81 during this publication. Coinmarketcap data shows the 5th-ranked digital token lost 13.22% within the previous seven days.
Meanwhile, MATIC investors might have to lower their expectations despite the predictions. The 4hr chart shows the altcoin will likely surrender the 1.13% upswing recorded within the previous 24 hours. The chart showed the 20-day EMA stayed beneath the 50 Exponential Moving Average.
Such a position shows MATIC will likely witness a near-term bearish action. Moreover, the mid-term outlook didn’t show a highly beneficial bias as the 200-Exponential Moving Average remained beyond the 20- and 50-Exponential Moving Averages.
Editorial credit: sdx15 / shutterstock.com
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