[DD] Thorough research on Polygon (MATIC) and QuickSwap (QUICK) – An Analysis
FULL TRANSPARENCY: Since about 2 weeks ago I do have 6% of my portfolio in MATIC, and 4% of my Portfolio in Quickswap (QUICK)
I decided to write this post as I have a bit of downtime at work and these two projects have been on my mind ever since I came in touch with them. It all started when a friend of mine enlightened me about a Uniswap clone that runs on the MATIC network and is actually lightning fast, has literally zero fees (I tried calculating the fee in MATIC to USD, it is 0.00000014 USD which my calculater showed as ZERO) and offers some amazing yield farming for liquidity providers.
Now I am usually very cautious as to what people recommend to me, as there is always a hidden shilling agenda involved since they benefit from people buying as it will make the price go up. So I decided to do some actual research and test it out myself. I tested out Quickswap, and holy jesus a new world opened up for me. It actually was instantaneous, and with negligable fees. THIS is what crypto should be and it is definitely how the original crypto guru's envisioned it. So I looked into how this exchange Quickswap could be so fast and feeless (if anyone says nano here i swear to god.) and decided to dive a bit deeper into MATIC, what it actually does, and how it works.
So most of you have at least seen the ticker MATIC in the recent days, as it has just been added to coinbase which generated some hype and a big spike in price. But just seeing a ticker does not make you understand the project, which is why I am here to explain. Matic has recently rebranded to Polygon, but is still using the MATIC ticker. So what is Polygon:
'Polygon is a protocol and a framework for building and connecting Ethereum-compatible blockchain networks' – 'Ethereum's Internet of Blockchains'
If you are like me then you see some buzzwords here that almost every project uses. So let me explain this in a more simplistic manner. Ethereum as we all know and love has some growing pains at the moment. It is the leading development platform on blockchain applications, which means that there are literally thousands of dApps running on Ethereum. However, this does not mean that Ethereum is the perfect product, actually far from it.
Ethereum has low throughput, has insanely high gas fees, has delayed proof-of-work finality (causing transactions to be slower), and many more smaller issues that developers have to deal with such as clogging risk, tech stack that is not customizable, etcetera. This is where Polygon comes in to play. How can you benefit from using Ethereums Ecosystem while also mitgating the issues mentioned above? Polygon enables developers to surpass these issues and enjoy dedicated blockchains for scalability, similar security (security as service) as Ethereum, you have full sovereignty with dedicated throughput and resources, fully customizable tech stack, interoperability, and many more buzzwords that you and I know nothing about. What we do need to know is that Polygon utilizes Ethereums' benefits, while mitigating Ethereums' flaws. Scalability is honestly the keyword here, since that is what is hampering Ethereum's growth at the moment.
There are many promising projects that run on Matic already, I am sure at least some of you have heard of Aavegotchi, a DeFi based crypto collectibles game which incorporates NFT's, or SportX a sports betting platform, and many more projects like this.
THE NUMBERS – NOT INVESTMENT ADVICE
MATIC – As you can see Matic has been steadily increasing over the last month, and given recent Coinbase news has spiked upwards of 30 cents. As of writing this post, MATIC is worth $0.3212, with a market cap of $1.6 billion and a circulating supply of 50%. Now as MATIC is picking up steam and more and more applications are being made on this platform, there is still so much more room to grow. For example, 15% of my portfolio is Cardano (ADA) which is a project I thoroughly believe in, but is also at quite a big Market Cap of $37b. I honestly think the tech behind Polygon is better or at least at the same level of Cardano, but the Market Cap is still significantly lower. I expect these two coins to get closer to eachother one way or another, let us hope it is by MATIC increasing instead of ADA decreasing. Obviously, this is more an opinion on the products than technical analysis on the prices.
QuickSwap – QuickSwap is VERY VERY new. In fact, it only went live less than a month ago. as you can see the price SHOT up insanely, as there was such a huge amount of liquidity available on the platform in such a short time. It passed 100m liquidity in less than 2 weeks after launch, which is insane. But after using it I felt like the hype was genuinly warranted. The platform is just amazing, the liquidity providers are making bank, and even when Bitcoin was falling, QuickSwap rose to glory. So inevitably after a huge pump, there will be a part of profit taking, which was done quite heavily. The price appears to have bottomed out around $200 per coin and has resumed a steady, more healthy climb back up instead of the steep insanity that followed the week after release. QuickSwap peaked at around $560 four times, and I see this peak coming back around within the next month easily. The Market Cap is currently only around $42 million, so there is actually enormous potential here as I see it being a legitimate competitor to Uniswap, Sushiswap and Pancakeswap in the future.
TL;DR & Conclusion
- Used Matic & Quickswap
- Fell in love with the products
- Spent an afternoon reading up on it
- Bought tokens (in it for the tech, FOR REAL THIS TIME)
I created this post initially because I wanted to talk about MATIC, and have a discussion with people who know about this subject. I was going to frame it as MATIC being the next best thing taking over crypto, but while doing research I felt like I didn't need to make the project compete with Ethereum, as it actually takes the best things from Ethereum and gets gracefully around the flaws that Ethereum currently has. In the future I feel like Ethereum and Polygon together will become increasingly dominant in the crypto ecosphere, and that is definitely not a bad thing since it just works flawlessly. MATIC is something that I could see hit the top 25 sooner rather than later, but maybe there is just too much hopium injected in my veins right now as I am all jacked up on research. Anyways, prove me wrong, let me know any flaws, I am here to debate and learn! I also thought it would be nice to have some actual content to talk about instead of just the generic garbage that is on this sub since the general public arrived here and the incentive to farm upvotes (Moons) is as strong as it is.
If you made it this far, thanks for reading. Really, I appreciate it.