ETH - Is Polygon Still a Buy After the Ethereum Merge?
In the run-up to The Merge, some investors focused on Polygon (CRYPTO: MATIC) as a potential beneficiary of the major technological upgrade Ethereum (CRYPTO: ETH) was about to undergo. After all, Polygon is generally considered to be the premier Layer 2 scaling solution for Ethereum, so it made sense that Polygon would benefit from The Merge as well. There was a brief spike over the summer when Polygon tokens tripled in price from $0.30 to $1, but they now seem to have settled into a trading range around $0.75.
Does this mean investors have cooled on Polygon's prospects? Or is it simply a realization that it will simply take longer than expected for Ethereum to realize all of the performance enhancements the community has promised? Either way, with the completion of The Merge behind us, this could be a good time to reevaluate the investment case for Polygon.
The good news is that, even after The Merge, Ethereum will continue to rely on Layer 2 scaling solutions like Polygon to reduce "gas fees" and clear up blockchain congestion. Ethereum co-founder Vitalik Buterin has already told us that. However, there are plenty of other Layer 2 solutions out there, including Optimism (CRYPTO: OP) , Loopring (CRYPTO: LRC) , and Arbitrum . So there's certainly no guarantee that Polygon will hold onto its position as the premier Layer 2 scaling solution for Ethereum.
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Is Polygon Still a Buy After the Ethereum Merge?