The Polygon (MATIC) blockchain made a name for itself over the last few years thanks in part to Ethereum‘s (ETH) rise. Polygon is a Layer 2 scaling solution for Ethereum. This means that Polygon helps make Ethereum more efficient, since Ethereum suffers from congestion and high traffic at times. Users flock to Polygon because it offers the security and decentralization of Ethereum, but with faster speeds and lower fees.
Polygon has a proven track record, but its future is what’s most exciting. Even with a brutal bear market gripping most cryptocurrencies, Polygon’s developers continue to create new solutions to support more and more use cases.
Arguably the most important development coming from Polygon is known as the zero-knowledge Ethereum Virtual Machine (zkEVM). This technological feat allows the Polygon blockchain to support further use cases without sacrificing speeds or costs.
Without getting too technical, zkEVMs make Polygon more versatile to support not only new smart contracts but even old smart contracts that were originally written on Ethereum. These zkEVMs allow developers to migrate their Ethereum-based smart contracts to Polygon’s blockchain without having to rewrite any code. Developers might want to do this because Polygon offers those lower fees and faster speeds previously mentioned. In addition, a move to Polygon won’t sacrifice any of the highly desired security and decentralization that comes with the Ethereum blockchain.
It is planned that the zkEVMs will be live in early 2023. Timelines in crypto are notoriously unstable — look no further than Ethereum’s merge to proof of stake, which has been delayed multiple times — but zkEVMs could enable Polygon to reach a new level of usefulness, something that might be worth waiting a few more months for.
Polygon pairs with Meta
In those next few months, an increased number of users might start realizing that Polygon offers a world of opportunities. Just a few weeks ago it was announced by Meta (META) CEO Mark Zuckerberg that Instagram will unveil NFTs to users in over 100 countries across Asia, Africa, the Middle East, and the Americas. The plan is for NFTs from Solana (SOL), Flow (FLOW), Ethereum, and — last but not least — Polygon to be compatible with Instagram.
Rather than being a marketplace to purchase NFTs, users will be able to show off and share their digital assets with followers. The NFTs will have basic information like the creator, name of the piece, and the blockchain on which it was purchased.
This is likely the most exposure Polygon NFTs have ever received. Now that Polygon has a presence in front of Instagram’s two billion users, hopefully more users will learn of its lower fees and faster transaction speeds compared to Ethereum.
Disney does crypto
As if the last month wasn’t good enough for Polygon, the blockchain garnered attention from one of the most well-known companies in the world. In late July, Disney (DIS) announced that its latest round of participants in the Accelerator Program was finalized — and Polygon was one of them.
The Accelerator Program is a “business development program designed to accelerate the growth of innovative companies from around the world.” As one of six members to be part of this year’s class, Polygon receives investment capital, access to co-working space at Disney’s creative campus, and mentor support. Disney hopes that eventually a collaboration will come out of these ventures.
Imagine what this could do for Polygon’s growth — and its price. Serving as the blockchain of choice for Disney could propel Polygon to heights that we haven’t seen before. When taking into account that zkEVMs are on the horizon, a presence with Instagram is looming, and the possibility of joining forces with Disney — it almost seems too good to be true.
Despite being down nearly 70% from its all-time high, out of all the other beaten-down cryptocurrencies, Polygon might have the most upside in the entire market. Even if Polygon were to only return its previous high of almost $3, that would present investors with a possible 300% return. Nothing is guaranteed in investing, but if Polygon could reach that price before its associations with Instagram or Disney and the introduction of zkEVMs, imagine where it could head in the future.
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. RJ Fulton has positions in Ethereum and Solana. The Motley Fool has positions in and recommends Ethereum, Meta Platforms, Inc., Polygon, Solana, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool has a disclosure policy.