A well-known cryptocurrency analyst has warned about Polygon (MATIC), a layer 2 scaling solution for Ethereum (ETH).
Anonymous host of InvestAnswers To tell His 441,000 YouTube subscribers say Polygon faces a “killer row” in the Layer 2 competition, specifically referring to Arbitrum as a “major competitor.”
He also said he is concerned that Polygon is paying non-fungible token (NFT) projects to use its solution. Additionally, the host says he believes polygon speed, inflation, and concentrations of “heavy” whales are also all red flags.
“yes, [Polygon] It did very well in a bear market, but what usually works in a bear market doesn’t work in a bull market. This is also true from history: see Chainlink in 2018, see it in 2022. This is a very good analogue. “
Analysts say they have swapped 65% of MATIC to Ethereum competitor Solana (SOL).
MATIC is trading at $1.22 at the time of writing. The 10th largest crypto asset by market capitalization has fallen more than 4% over the past 24 hours, but has gained nearly 8% over the past month. It is down more than 58% from its all-time high of $2.92 set in December 2021.
Last week, Polygon Labs announced It had laid off about 100 employees, 20% of the project’s workforce.
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Generated image: In the middle of the journey
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