Because the Ethereum [ETH] transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) attracts nearer, it’s anticipated that particular crypto initiatives is likely to be affected by the change. Some would possibly get a superb consequence.
For others, the consequence is likely to be unfavourable. One in all such is Polygon [MATIC], the scaling answer that runs on the Ethereum blockchain.
Responding to speak in regards to the attainable results in an official communique, Polygon stated its traders have nearly nothing to fret about.
Good vibes solely
In keeping with the statement launched by way of Polygon’s weblog, the Merge would solely produce excellent news for its community. In abstract, the web3 infrastructure famous that the end result could be an “environmentally-friendly scaling answer.” However how would the ETH Merge affect this potential scalability?
Whereas the interpretation won’t lead to decrease gasoline charges for ETH, Polygon stated it will for MATIC. Citing a attainable 99.5% discount in vitality consumption, Polygon inspired its neighborhood to sit up for an extra enhance in transaction pace in addition to the cheaper charges.
One other level of the announcement was the opportunity of an improved safety infrastructure on the Polygon community. The assertion learn,
“The merge fixes the huge carbon footprint of Ethereum, arguably beefing up Ethereum’s safety, and lowering ETH inflation. Polygon positive factors from Ethereum’s improved safety and normal progress to the ecosystem.”
Polygon isn’t the one one that would achieve from the Merge. Ethereum would additionally derive higher scalability from Polygon as a consequence of its zero-Information Ethereum Digital Machine (zkEVM).
With Polygon aiming to be the go-to platform for Decentralized Functions (DApps) improvement, the Merge might drive it nearer to attaining this goal.
The carbon-neutral crypto challenge acknowledged these opinions. So what place does this replace depart its native cryptocurrency, MATIC?
Extra, perhaps much less
The talks of a optimistic outcome as per the Merge might additionally result in a attainable uptick for MATIC afterward. Nevertheless, the current state isn’t so encouraging.
Whereas MATIC was value $1.04 on 14 August, its worth had declined because it was $0.81 at press time. As per information from CoinMarketCap, the Fifteenth-ranked cryptocurrency was down 13.22% from the final seven days.
Regardless of the anticipation, MATIC traders may have to put low on their expectations. Primarily based on the four-hour chart, MATIC might not be capable of maintain the 1.13% positive factors it acquired during the last 24 hours.
The chart revealed that the 20-day Exponential Transferring Common (EMA) (blue) was beneath the 50 EMA (yellow). This place signifies that MATIC was poised for a bearish motion within the brief time period.
Additionally, the mid-term projection didn’t present a lot helpful pattern because the 200 EMA (cyan) remained above the 20 and 50 EMAs.
Supply: TradingView
Nevertheless, the On-Steadiness-Quantity (OBV) gave the impression to be on the firmer facet of an uptick. With these indications, MATIC traders’ might have to decelerate on their expectations because the potential stance after the Merge appears to be swinging sideways.