What Is Polygon (MATIC)? All You Need To Know

Key Takeaways

  • Polygon (MATIC) is a crypto project designed to address the challenges of slow transaction times and high fees on the Ethereum blockchain.
  • Additionally, the project is also attracting a growing number of decentralized applications (dApps) across various sectors, such as DeFi, NFTs, and gaming.
  • MATIC tokens are planned to be migrated to a new token (POL) in Q2 2024.

What Is Polygon (MATIC)?

Polygon (MATIC) is a cryptocurrency project aiming to solve the scalability issues of the Ethereum blockchain. Think of Ethereum as a busy highway and Polygon as a network of express lanes built to alleviate traffic. Transactions on Polygon are processed much faster and at a lower cost compared to Ethereum’s mainnet. Yet, they still leverage Ethereum’s security for final settlement.

How Does Polygon (MATIC) Work?

Polygon (MATIC) is the Ethereum blockchain’s “layer two” scaling solution. Here’s a breakdown of how the project works:

Sidechains And Plasma Chains

Polygon utilizes a network of separate blockchains running parallel to the Ethereum mainnet. These can process transactions independently, significantly reducing congestion on the main Ethereum network. 

Polygon also leverages Plasma, a scaling framework that allows for batching transactions off-chain before periodically submitting them to the Ethereum blockchain for final settlement. This ensures the security of Polygon transactions while enabling faster processing times.

Validators And The MATIC Token

Polygon utilizes a Proof-of-Stake (PoS) consensus mechanism to secure the network and validate transactions. Validators stake MATIC tokens to participate in the validation process and earn rewards. 

Interacting With Polygon

You will need a crypto wallet compatible with the network to interact with Polygon applications or transfer funds. Many popular wallets support Polygon, allowing you to connect and use its features.

Token Migration

 As of April 2024, there’s an ongoing migration planned where MATIC tokens will be transitioned to a new token called POL. This migration is intended to streamline the network’s governance structure.

Polygon (MATIC) Token And Tokenomics


The MATIC token is Polygon’s native cryptocurrency. It is used for:

  • Transaction Fees
  • Staking
  • Governance

Token Details

Total Supply 10,000,000,000 MATIC

Circulating Supply 9,899,026,214 MATIC

Current Price $0.7153

Market Capitalization $$7,080,853,466

This information is current as of May 8th, 2024, and the token’s price, market value, and available supply may fluctuate.


  • Staking Rewards (12%)
  • Foundation (21.86%)
  • Ecosystem (23.33%)
  • Team (16%)
  • Advisors (4%)
  • Private Investors (3.8%)
  • Binance Launchpad (19%)

Where Can I Buy Polygon (MATIC)?

Binance Binance is a major exchange offering a wide range of cryptocurrencies. It offers multiple ways to buy crypto, including credit cards, debit cards, and peer-to-peer (P2P) trading.

Bybit This exchange is known for its derivatives and margin trading features, but you can also use the platform for spot trading.

Coinbase Coinbase is an American-based cryptocurrency exchange that allows you to buy cryptocurrencies using various payment methods, including bank transfers, debit cards, and wire transfers.

Is Polygon (MATIC) A Good Investment?


  • Strong Ecosystem Growth – The Polygon network is attracting many decentralized applications (dApps) in various fields, such as DeFi, NFTs, and gaming.
  • Interoperability with Ethereum – Polygon is designed to be interoperable with Ethereum, meaning assets and data can move seamlessly between the two networks. This is a significant advantage for developers building applications on Polygon.
  • Scalability – Polygon’s architecture allows it to handle a much higher volume of transactions than Ethereum’s mainnet. This is essential for broader adoption of blockchain technology.


  • Bridge Risk – Moving assets between Polygon and Ethereum involves bridges, which have been exploited by hackers in the past. This introduces an element of risk when transferring funds.
  • Reliance on Ethereum – While interoperable, Polygon still depends on the underlying security of the Ethereum blockchain. Any issues with Ethereum could impact Polygon.
  • Token Migration – In the future, MATIC tokens will be migrated to a new token (POL), adding some uncertainty for investors.

Final Thoughts

Whether Polygon (MATIC) is a good investment depends on your risk tolerance and goals. Remember, this guide only provides a starting point for your research. Always conduct your due diligence before making any investment decisions.

Via: 2Usethebitcoin.com

Share this article:

Leave a Reply

Your email address will not be published. Required fields are marked *

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

The reCAPTCHA verification period has expired. Please reload the page.

Please enter CoinGecko Free Api Key to get this plugin works.