The cryptocurrency market is highly unpredictable and altcoin prices can swing wildly depending on a variety of factors. In the last couple of months, two of the most popular cryptos, Polygon (MATIC) and Cardano (ADA), have been in a race for market share and investor attention. Let’s take a closer look at what could lead to Polygon surpassing Cardano in terms of market cap.
Polygon DeFi Leading Token COVO Jumps 65% in the Last Week
The future of the DeFi world on Polygon looks very bright with a lot of new investments and projects being rolled out. The quick transaction times and low fees provided by Polygon make it an attractive alternative to Cardano (ADA). As more users and projects migrate to Polygon, the network is expected to keep growing, thus attracting more attention from other crypto communities.
COVO is the leading DeFi token in the Polygon ecosystem and it is on the rise. COVO stands for collateralized utility token and it is issued by Covo Finance, a decentralized exchange built on the Polygon Network. The token has increased by more than 65% over the past week on Uniswap V3 (Polygon). Covo Finance provides DeFi traders and investors with fast and low-cost trading solutions with up to 50x leverage. It’s a popular choice for people who want to maximize their profits and minimize their risk. One of the many benefits of Covo tokens is that they are awarded in three different ways. First, they are entitled to 30% of all protocol fee payments in MATIC or escrowed COVO (esCOVO tokens) which can be staked and vested. Rewards encourage users to hold COVO tokens, thus helping to increase the token’s value over time. As expected, the COVO token is expected to keep appreciating as Polygon attracts more users to its network, making it a great opportunity to capitalize on the growing Polygon (MATIC) crypto.
Polygon (MATIC) vs Cardano (ADA) Detailed Comparison
Third-generation blockchain platforms are aiming to offer faster and more efficient transactions than their predecessors. While Cardano is a self-contained blockchain, Polygon (MATIC) is a Layer 2 scaling solution for Ethereum designed to address the network’s scalability issues.
Both cryptocurrencies have experienced significant growth in recent months. Polygon is currently ranked #8 in terms of market cap, while Cardano is ranked #7. However, Cardano’s market cap is presently higher than Polygon’s at $10.62 billion compared to $9.25 billion for Polygon crypto.
Factors That Could Bring About the Surpassing of Cardano by Polygon in Market Cap
Below are some of the vital factors that could lead to Polygon surpassing Cardano in market cap. The increased adoption and use of the Polygon network is a major factor. The network has experienced substantial growth in recent months, with 227.25k profitable addresses and 320.99k losses. The volatility of on-chain transactions on the Polygon network has been high in the last week with a 7-day peak of $353.71 Million on March 9th and a 7-day low of $39.24m on March 5th. The average daily transaction volume for the 7-day period has been stable at 4.13k.
In addition, the number of transactions worth more than $100,000 is increasing, with 313 transactions occurring in the last 7 days. This ranking at 10th indicates that larger institutions and investors are increasingly interested in the Polygon network.
Developer Interest and Innovation
Another important factor that could result in Polygon surpassing Cardano in market cap is more developer interest and innovation in the Polygon network. Polygon is a Layer 2 scaling solution for Ethereum and it can be used with Ethereum smart contracts and can be leveraged from the Ethereum developer ecosystem. The company has initiated many innovative features and initiatives, such as the Polygon Grants program, which provides funding for developers building on the platform.
Additionally, Polygon recently launched the Polygon Studios Initiative which supports the development of gaming-related NFT projects on the Polygon network.
Partnerships and Integrations of Polygon (MATIC)
Partnerships and integrations with other blockchain projects and platforms can also drive the growth of a cryptocurrency’s market cap. Polygon has formed partnerships and integrated with many high-profile companies, including Aave, Curve Finance, SushiSwap, Compound Finance and V3 Polygon mainnet.
Polygon (MATIC) zkEVM Mainnet Beta Launch on March 27th
Polygon (MATIC) has announced the beta launch of its zero-knowledge Ethereum Virtual Machine (zkEVM) mainnet, scheduled for March 27th. After three and a quarter months of arduous testing, the system uses zero-knowledge proofs for validating transaction data before bundling them and confirming their authenticity on Ethereum, allowing for significant savings on transaction costs. The Polygon team is not the only one working on a zkEVM strategy as other scaling providers, such as zkSync, are also involved. Scroll is also developing similar technology called zkrollup scaling technology, which has been in development for the past three years. The highest priority has been given to security, undergoing several tests and audits.
Market Trends and Sentiment
Finally, market trends and sentiment can also play a role in the growth of a cryptocurrency’s market cap. The crypto market is known for its volatility as it can be affected by many factors, including regulatory changes, investor sentiment and worldwide economic conditions.
While Cardano has experienced substantial growth in recent months, it has also been met with criticism and skepticism by some analysts and investors. On the other hand, Polygon crypto has been gaining traction and support from the crypto community. Industry experts predict that Polygon could be a top-performing crypto in the upcoming months and surpass Cardano’s market cap (ADA).
