As the Ethereum [ETH] transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) attracts nearer, it’s anticipated that particular crypto tasks may be affected by the change. Some would possibly get a great final result.
For others, the consequence may be unfavorable. One of such is Polygon [MATIC], the scaling answer that runs on the Ethereum blockchain.
Responding to speak in regards to the doable results in an official communique, Polygon mentioned its investors have virtually nothing to fret about.
Good vibes solely
According to the statement launched through Polygon’s weblog, the Merge would solely produce excellent news for its community. In abstract, the web3 infrastructure famous that the result can be an “environmentally-friendly scaling solution.” But how would the ETH Merge affect this potential scalability?
While the interpretation won’t end in decrease fuel charges for ETH, Polygon mentioned it might for MATIC. Citing a doable 99.5% discount in power consumption, Polygon inspired its group to stay up for an additional improve in transaction pace moreover the cheaper charges.
Another level of the announcement was the potential of an improved safety infrastructure on the Polygon community. The assertion learn,
“The merge fixes the massive carbon footprint of Ethereum, arguably beefing up Ethereum’s security, and reducing ETH inflation. Polygon gains from Ethereum’s improved security and general growth to the ecosystem.”
Polygon isn’t the one one that might acquire from the Merge. Ethereum would additionally derive higher scalability from Polygon as a result of its zero-Knowledge Ethereum Virtual Machine (zkEVM).
With Polygon aiming to be the go-to platform for Decentralized Applications (DApps) growth, the Merge might drive it nearer to reaching this goal.
The carbon-neutral crypto undertaking acknowledged these opinions. So what place does this replace depart its native cryptocurrency, MATIC?
More, perhaps much less
The talks of a optimistic end result as per the Merge might additionally result in a doable uptick for MATIC afterward. However, the current state isn’t so encouraging.
While 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.
Despite the anticipation, MATIC investors might have to put low on their expectations. Based on the four-hour chart, MATIC could not be capable of maintain the 1.13% positive factors it acquired over the past 24 hours.
The chart revealed that the 20-day Exponential Moving Average (EMA) (blue) was under the 50 EMA (yellow). This place signifies that MATIC was poised for a bearish motion within the brief time period.
Also, the mid-term projection didn’t present a lot useful development because the 200 EMA (cyan) remained above the 20 and 50 EMAs.
However, the On-Balance-Volume (OBV) appeared to be on the firmer aspect of an uptick. With these indications, MATIC investors’ could must decelerate on their expectations because the potential stance after the Merge appears to be swinging sideways.