Polygon plans to form a DAO, should you invest in MATIC?

By: Invezz
Polygon (MATIC) extended its correction from the record highs. Should I invest in June?

Polygon MATIC/USD is a layer 2 scaling solution for Ethereum that improves speed and reduces the cost as well as complexities of transactions within its network. It uses side chains that help with off-chain computation and maintain security. 

To accomplish these efforts, it takes advantage of Proof-of-Stake (PoS) validators.

Polygon’s DAO as a Catalyst for Growth

On August 19, Polygon announced on their Twitter and Medium page that the next phase of DeFi and Web3 will begin on Polygon, all whilst being decentralized and putting the community first.

Polygon experienced a huge level of activity led by native Polygon projects, such as QuickSwap and AaveGotchi, as well as Dfyn, and Ethereum blue-chips such as Curve, SushiSwap, Balancer, and Curve, which chose Polygon to scale to the next million DeFi users.

These projects brought both TVL and their communities, which engaged in low gas composability only available on Polygon.

With all of that in mind, Polygon said that they will build a decentralized autonomous organization (DAO) for the decentralized finance (DeFi) sector, with the aim for the DAO to attract 100 million users and define the ongoing DeFi developments. 

This DAO will aid in the collaboration between the blockchain-based systems, and it will use some of its $100 million #DeFiforAll Fund to achieve this process.

Furthermore, on August 13, Polygon acquired and merged with Hermez in a $250 million deal. This led to Hermez becoming a part of the Polygon ecosystem under the name Polygon Hermez, and it became part of its line of products such as Polygon SDK and Polygon Avail. 

Should you invest in Polygon (MATIC)?

On August 20, Polygon (MATIC) was worth $1.49.

When we look at its all-time high value as a point of comparison, we can see that it achieved a value of $2.62 on May 18. This made it 75% higher in value.

In the last 24 hours, MATIC saw an increase in trading volume of 34% and an increase in its market cap by 12%.

To get a better understanding of its recent price fluctuations, we will be going over its value in July.

It had its lowest point on July 20 where it dropped to $0.66, and its highest point on July 26 where it reached $1.09. Here we can see that the token increased in value by 65%.

According to data from IntoTheBlock, we can see that in the last 7 days, MATIC saw $787.89 million in transactions greater than $100,000.

Furthermore, we saw $123.05 million in total exchange inflows as well as $119.69 million in total exchange outflows.

With the increase in activity regarding the decentralized autonomous organization (DAO), we could see the token reach a value of $2.08 by the end of August. This makes MATIC a worthwhile investment.

The post Polygon plans to form a DAO, should you invest in MATIC? appeared first on Invezz.

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