What happened
As of 12:47 p.m. EDT, Polygon (MATIC +0.00%) is up 17.74% in the past 24 hours to $1.49 apiece. MATIC are tokens created on the Ethereum (ETH 3.97%) blockchain, and its network (Polygon) is used to increase the speed and efficiency of the former. On Oct. 15, Upbit, the fourth-largest cryptocurrency exchange globally by trading volume, listed MATC tokens for trading.
So what
Ethereum is at the heart of bringing decentralized finance (DeFi)to the masses. One can buy and sell non-fungible tokens (NFTs) with ETH, engage with decentralized applications (dApps), borrow and lend crypto using platforms built on its blockchain, trade on decentralized exchanges (DEX), and many more. However, transactions are prohibitively high as a hindrance to adoption. For example, during peak network times, it can cost hundreds of dollars to simply pay the transaction fee to purchase an NFT.
Image source: Getty Images.
Now what
Polygon solves that problem by rerouting ETH denominated transactions through its blockchain. With this setup, users can perform any of the actions above and pay less than $0.01 (denominated in MATIC) per transaction. Like with tech startups, cryptocurrencies and their networks that remove friction (intermediary fees) are in high demand.
Back in 2019, the DeFi sector was essentially negligible. Now, it has ballooned into a $230 billion industry. Polygon currently plays a critical role in removing barriers to entry. As a result, I would definitely recommend checking out its tokens.
