Polygon (Polygon) is turning things around

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Polygon (Polygon) is turning things around

While polygon is down more than 25 percent for the year, there are some signs that the crypto token is finally turning things around. The value of polygon has been up 12% since Sept. 28 after plunging by nearly 67% from February to September.

However, Polygon still has a long way to go before regaining the $1 mark. At its current price of around $0.56, Polygon's value would nearly double in value. There are two catalysts that could push polygon higher.

The number of users, developers, and partners of Polygon continues to grow, as measured by the number of users, developers, and partners. In September, Google Cloud became a validator on the Polygon proof-of-stake network. This means Google Cloud will enhance blockchain governance and secure the blockchain network in layman's terms. For Polygon, the fact that Google Cloud has chosen to become an official validator on the network can be seen as a sign of approval for the network.

In terms of non-fungible token sales, Polygon is still one of the top blockchains. According to the latest CryptoSlam NFT data, polygon has remained a top-five blockchain over the most recent 30-day period. The number of NFT projects that have been launched on the Polygon blockchain has been increasing significantly over the last 30 days, with Lufthansa and Casio among the biggest companies to launch on the platform.

Moreover, if you take a look at total value locked, which measures how much of a crypto token is 'locked' on the blockchain, Polygon stands out as the No. TVL's 5 blockchain, with almost $800 million in TVL. The metric can be viewed as a proxy for overall trust in a blockchain, so Polygon is still holding its own despite recent price volatility.

While all of this growth in the ecosystem is fantastic, the only factor that could unlock polygon's value is the crypto's new strategy, known as polygon 2.0. Skeptics may consider this as just a slick new marketing concept for a crypto that is trying to regain its former mojo. If you dig a little deeper into the latest improvement proposals for the Polygon blockchain, this strategy could lead to a complete restructuring of Polygon's blockchain architecture.

There is a lot to unpack here, but the most important change is that Polygon plans to move from primarily being a layer 2 scaling solution that speeds up and enhances Ethereum to being a layer 2 scaling solution for other blockchains as well. As an alternative to blockchain transactions, Polygon will continue to double its patent-based technology, which will allow for roll-up and validating blockchain transactions.

The combination of all three of these changes would set Polygon up for its next big wave of growth. I'm particularly excited about the possibility to tap into the growth happening on other blockchains beyond just Ethereum, he said. If the layer-2 niche is becoming crowded, this makes sense.

How is polygon undervalued?

Of evident concern is that even the formal announcement of Polygon 2.0 in mid-September did little to boost the price of the crypto. Although a 12% bump in the past few days is welcome, it's hardly proof that investors are starting to line up behind the new polygon. Even at a higher value of $0.56, Polygon is still trading at more than 80% below its all-time high of $2.92.

If the changes coming for Polygon are incremental in nature or represents something much bigger, the question to ask as an investor is whether the changes are incremental or represent something much bigger. If these revisions are only incremental, then Polygon might linger under the $1 price limit for some time. If you believe that Polygon 2.0 represents a dramatic change to the growth outlook for Polygon, then now may be the time to scoop up an undervalued crypto at a bargain bin price.