ETH - Better Buy: Ethereum or Polygon?
2023-03-24 07:15:00 ET
Amid all the excitement surrounding The Merge last year, the fortunes of Ethereum (CRYPTO: ETH) and Polygon (CRYPTO: MATIC) appeared to be inextricably linked. After all, Polygon was the most popular Layer 2 scaling solution for Ethereum, so any future growth in the Ethereum ecosystem implied future growth in the Polygon ecosystem. But fast forward to 2023, and it looks like the paths of these two cryptocurrencies are starting to diverge.
While both cryptos are up about 50% for the year, it's their performance over the past 30 days that's the most troubling. During that time, Ethereum was up about 10%, while Polygon was down 17%. Is this a short-term mispricing in the marketplace or a sign for investors that Polygon's future growth prospects are coming under pressure?
On the surface, the growth story for Polygon remains in place. It's arguably still the most popular Layer 2 in the Ethereum ecosystem and has some of the best technology out there for making Ethereum run faster, better, and more efficiently.
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Better Buy: Ethereum or Polygon?