Because the Ethereum [ETH] transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) attracts nearer, it’s anticipated that particular crypto tasks is likely to be affected by the change. Some may get an excellent end result.
For others, the consequence is likely to be unfavorable. One in every of such is Polygon [MATIC], the scaling answer that runs on the Ethereum blockchain.
Responding to speak in regards to the potential results in an official communique, Polygon stated its traders have nearly nothing to fret about.
Good vibes solely
In line 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 result can 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 could for MATIC. Citing a potential 99.5% discount in power consumption, Polygon inspired its group to sit up for an additional improve in transaction velocity moreover the cheaper charges.
One other level of the announcement was the potential 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 decreasing ETH inflation. Polygon good points from Ethereum’s improved safety and common development to the ecosystem.”
Polygon isn’t the one one that might acquire from the Merge. Ethereum would additionally derive higher scalability from Polygon attributable to 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 reaching this goal.
The carbon-neutral crypto undertaking acknowledged these opinions. So what place does this replace depart its native cryptocurrency, MATIC?
Extra, perhaps much less
The talks of a constructive consequence as per the Merge might additionally result in a potential uptick for MATIC afterward. Nonetheless, 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 might have to put low on their expectations. Based mostly on the four-hour chart, MATIC might not be capable to maintain the 1.13% good points it acquired over the past 24 hours.
The chart revealed that the 20-day Exponential Shifting Common (EMA) (blue) was under the 50 EMA (yellow). This place signifies that MATIC was poised for a bearish motion within the quick 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.
Nonetheless, 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.