Exploring MATIC’s long-term potential post Ethereum ‘Merge’
Ethereum’s Merge date is days away and the countdown has many people wondering about the fate of layer-2 scaling solutions.
You may have noticed Ethereum-associated cryptocurrencies and tokens such as MATIC are up substantially in the last few weeks.
However, the move to proof of stake will solve some of the scalability issues associated with Ethereum, thus the curiosity about the future of L2s.
Polygon is one of the layer-2 solutions whose future might be at stake due to the Merge.
However, that will most likely not be the case.
Although one of Polygon’s benefits is the rapid transaction count which is miles ahead of the Ethereum mainnet. Even so, Polygon also provides significantly lower fees.
Congestion and high ETH prices are the main reasons for expensive mainnet fees.
ETH’s price has gone up ahead of the Merge and will likely continue rallying. This means the transition to the PoS (Proof of Stake) consensus mechanism will do little to lower gas fees.
Polygon and other layer-2 solutions will continue operating to provide lower fees, hence MATIC will still be in demand.
Nevertheless, there is more to Polygon than meets the eye.
Partnerships with major enterprises such as Disney and Mercedes Benz are just the tip of the proverbial iceberg.
Polygon plans to become the bridge for the transfer of liquidity from traditional finance to crypto.
These developments might trigger an exponential increase in the demand for MATIC. Thus, aiding its long-term price action.
MATIC was up by 163% at press time on 4 August, from its bottom in June. It has been ascending within a support and resistance range, which is currently approaching the support line.
Source: TradingView
MATIC’s price action was headed upwards towards the end of last week.
Howeve
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