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Polygon introduced major developments to its ecosystem in June 2023, including a new token and a possible change to its proof of stake blockchain, which might become a data availability layer. Recently, the protocol announced a project titled “AggLayer”, capable of connecting monolithic blockchains in a modular architecture.
Despite those announcements consisting of fundamental developments, Polygon’s token MATIC is lagging behind Ether (ETH), Optimism (OP), and Arbitrum (ARB). Although this might look like a negative signal for Polygon, comparing MATIC with the likes of OP and ARB might not be wise, according to blockchain researcher and founder of Casta Crypto channel Rafael Castaneda.
“As I refine my perspective, I increasingly find it makes little sense to compare MATIC with tokens like OP or ARB, where the biggest discrepancy lies. MATIC is a token that has been on the market much longer, holds a higher position in the market cap rankings, and has already delivered 24,000% appreciation since its all-time low”, explains Castaneda.
Furthermore, with the new tokenomics designed for POL, Polygon’s new token, and the project’s new view of an aggregate layer, it may no longer classify its token as a ‘second-layer token’.
“With this, the correct value narrative for MATIC is not yet a heated one, which would be its application as a good solution for the Ethereum scalability market. Currently, the focus is on newer second layers and smart contract platforms that are hot with airdrops, so, naturally, MATIC doesn’t receive as much attention while we live through this meta-narrative”, Castaneda adds.
Are the promises factual?
In crypto, it is common to see protocols promising new developments and falling short of meeting them. In Polygon’s case, Castaneda assesses that all technical promises have been met so far.
“The most important aspects of these deliveries will be implemented over time. The launch of the aggregation layer in February will be an important milestone, along with developments in POL staking for which we still don’t have a timeline, and the adaptation of the Polygon PoS and Polygon zkEVM networks to benefit from the fee reductions of the new Ethereum upgrade, the Dencun Fork”, he says.
Castaneda warns that delays and technical failures can be very harmful and potentially contribute to a deterioration in price action. However, there’s no reason to doubt Polygon just yet, according to the blockchain researcher. If the technical milestones are implemented correctly, then it would be fair to say that MATIC is on the path originally envisioned since the announcement of Polygon 2.0.
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