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Ethereum Merge Fast Approaching, This is How it May Impact the Polygon Ecosystem!

Ethereum Merge

Key Takeaways:

  • The Polygon(MATIC) price closed the previous day’s trade at $0.819 with a market capitalization of $6.88 billion and a circulating supply of 8.48 billion 
  • As the Ethereum Merge is fast approaching, Polygon seems to gear up notably and is expected to coil up significantly after the Merge

Ethereum PoS Transition to be the Game-Changer for Polygon-3

The Merge is the most awaited event in the entire crypto space which is believed to turn the tables for many altcoins, Polygon is one among them. It is the Layer-2 scaling solution, mainly a sidechain running alongside Ethereum and hence the transition may make the two networks alike, working on the same consensus mechanism, Proof-of-Stake(PoS)

The Polygon Network in the recent Blog highlighted the importance of the upcoming merger that may further impact the MATIC price. According to the blog, the ETH Merge may not reduce the gas fees or increase the speed at once as it is dependent on Polygon & the other Layer-2 solutions. 

The Merger mainly intends to be more environmentally friendly by reducing the carbon footprints of Ethereum, enhancing security & reducing ETH inflation. Hence Polygon may be benefitted from these improvements while Ethereum also gains from Polygon’s scaling solutions like the recently launched Polygon zkEVM. 

Ethereum Merger Explained

Ethereum came into existence to overcome the drawbacks of the Bitcoin Network. While many other smart contract platforms were established, intending to be Ethereum Killer, the platform locked horns with Ethereum 2.0. The beginning of the upgradation was laid down in December 2020 with the release of Phase 0-Beacon Chain. 

Further, a series of Testnets and upgrades were rolled out to measure the impact on the Mainnet. When the final Testnet Goerli was Merge without any major technical loopholes, the date for the event was announced. The Ethereum Merge is nothing but a transition of the network from Proof-of-Work to Proof-of-Stake, to be more environmentally friendly. 

Here, PoS validators do not mine any block, instead, they create new blocks when chosen & validate. The validators are none other than the people who have staked their ETH with the blockchain. While no new ETH is mined, the daily issuance of the asset is expected to drop by 90% after the merger.

What’s Next for Ethereum & Polygon

Polygon has been closely working for a more efficient & scalable Ethereum Network for a pretty long time. Therefore, the upcoming Merger may turn the tables for the entire ecosystem that runs along the ETH chain. 

The merge is just the beginning of the new version of Ethereum, as the core developers describe the network as becoming a settlement layer for layer-2 solutions like Polygon, in the roadmap. Any growth in the settlement layer may pave way for a better Polygon Network with high speed, lower transaction fees, etc.

Therefore, post the Merger, Polygon aims to become the fastest, most secure platform for the users or developers in the world. The PoS transition & the recently launched zkEVM could be a breakthrough in the entire crypto space.

Polygon(MATIC) Technical Analysis

polygon

Source: Tradingview

  • The MATIC price has placed itself in a bullish ascending triangle ever since it marked the lows in June 
  • During the previous rally, the price made an attempt to surpass the upper resistance but failed miserably and now trading along the ascending lower support
  • In case of extensive bearish pressure, the price may drop to the immediate support and rebound firmly within the triangle to reach the peak of the consolidation. 
  • A significant leg up then may enable the price to rise beyond $1 and soon after the Merger, the MATIC price may lay down a firm upswing

Will MATIC Price Surge Ahead of Ethereum Merge?

MATIC’s price is withstanding bearish pressure for a long time, despite frequent updates over the network in the past couple of months. On the other hand, the circulating supply of MATIC has constantly been on the rise, including the previous single-day spike from $8.04 billion to $8.48 billion. 

Therefore, the upcoming Ethereum Merge is expected to benefit Polygon as it will become more eco-friendly. Moreover, by improving the scaling and speed, MATIC price may in turn be impacted which may easily make it out beyond $1.5 around the Merger. 

Latest News on Polygon (MATIC) 

  • Founder of Polygon, Sandeep Nailwal launches a $50 million crypto-based Venture Capital Fund called the Symbolic Capital aiming to empower the early-stage Web3 platforms.
  • GameSwift, a Web3 gaming solution, recently collaborated with Polygon to build an all-inclusive Web3 Gaming Ecosystem
  • Popular crypto exchange, Gemini, announced new staking features that support the Polygon chain along with Ethereum, Solana, Polkadot & Audius in the coming days.
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