Known as a Layer 2 sidechain, Polygon (MATIC 0.74%) is designed to help streamline Ethereum's (ETH 1.36%) congested, and at times costly, network. As a result of Polygon's innovative solutions to help Ethereum become more usable, high-profile companies are starting to take notice of the potential role that Polygon could have in the world of Web3.
On the technology side of things, Polygon developers recently announced that the blockchain will be taking the next step in its evolution soon. Known as zero knowledge Ethereum Virtual Machine, or more concisely, zkEVMs, this software was believed to be years out from final maturation. But based on a statement in July, it looks like zkEVMs will go live on Polygon sometime in early 2023.
With zkEVMs, Polygon will be able to support more smart contract-based applications without sacrificing speed or costs. Even better, zkEVMs will allow Ethereum developers to move their smart contracts over to Polygon without having to rewrite any code. By moving to Polygon, developers can take advantage of the fast speeds and low fees the Layer 2 sidechain offers. And since it's a sidechain to Ethereum, they get the added benefit of Ethereum's highly desired security and decentralization.
Noteworthy partnerships continue
The growth and development of Polygon's blockchain continues to garner attention from some of the most well-known companies around the world. In August, it was announced that Polygon was a part of the 2022 inductee class into Disney's (D 0.41%) Accelerator Program. The Program serves as Disney's venture capital branch, which looks for growing companies "with a vision for making an impact on the future of technology and entertainment."
The most recent class of inductees specialize mainly in Web3 technologies, with companies focused on augmented and virtual reality, non-fungible tokens (NFTs), and the metaverse. Polygon was the only blockchain company among this year's participants.
As a member, Polygon will have access to funding and resources directly from Disney to further grow and support its vision of becoming the premier Web3 blockchain. The ultimate goal is that a partnership develops between the two as Disney begins to enter the world of digital assets and the metaverse.
Another international company recently announced a partnership with Polygon as well -- Meta (META -0.54%). Chief Executive Officer Mark Zuckerberg stated that Instagram will unveil NFTs to users in more than 100 countries across Asia, Africa, the Middle East, and the Americas in the coming months. Instead of being a marketplace to purchase NFTs, users will be able to connect a wallet to their social media account to show off digital collectibles. Of the four blockchains selected, Polygon was one of them.
It's been a fantastic third quarter for Polygon, and it recently just got even better. In addition to the Disney and Meta news, the world's most popular NFT marketplace, OpenSea, said that the site will be adding Polygon functionality. Now creators and users can utilize Polygon's cheap fees to buy and sell NFTs.
It doesn't stop there. On Aug. 31, the popular financial trading platform Robinhood (HOOD 10.26%) said that it would be adding Polygon to its list of tradable cryptos. The nearly 16 million active users of the mobile app will now be able to buy and sell the world's 12th most valuable cryptocurrency.
The case for $2
It's tough to truly conceptualize just how many people might be introduced to Polygon's blockchain in the coming months. Potentially serving as the blockchain of choice for Disney could propel Polygon to heights that we haven't seen before. Furthermore, when taking into account that zkEVMs are on the horizon, a presence with nearly 4 billion Meta social media users, and another 16 million Robinhood users, is looming. Imagine what this could do for Polygon's growth -- and its price.
It's trading for about $0.90 today, so the long-term value of Polygon may not be accurately represented in its price. Maybe the crypto winter is hampering excitement?
Regardless of what the true reason is, Polygon is building for the future. Its all-time high was in late December 2021, when it got to just shy of $3. At that time, Polygon was likely riding the tailwinds of Ethereum. But now the blockchain has made a name for itself with some of the most prolific companies.
To regain the $2 mark, Polygon would have to roughly double from today's prices. Because Polygon was able to hit nearly $3 without zkEVMs and its new partnerships, a doubling from here seems more than plausible. It won't happen overnight, but the development and accolades that Polygon has obtained in the depths of a bear market should help the cryptocurrency hit $2 once confidence in the market returns.