The search for undervalued and undiscovered cryptocurrencies
As the market was plummeting over the last few weeks there was one stand out performer — Polygon. Its price entered the market dip at around $0.81 and increased to a high of $2.62. Whilst Bitcoin was suffering at the hands of the likes of Elon Musk’s attention seeking utterances Polygon was on the receiving end of praise from the likes of Mark Cuban who announced he had bought into the project and was a big supporter.
MATIC is the cryptocurrency that powers the Polygon network which provides a framework for building and connecting blockchains that are supported by Ethereum technology. It aims to provide a cheaper, more secure and streamlined solution for transactions conducted on the Ethereum blockchain. The network provides a side chain to the main Ethereum blockchain.
According to their website, ‘Polygon solves pain points associated with blockchain, like high gas fees and slow speeds without sacrificing security.’
They must be doing something right because the number of apps built on Polygon between January and May has increased eight fold to almost 400.
Projects have been flocking to Polygon’s because it allows them to benefit from the distinct advantages and leadership Ethereum has in the blockchain world whilst allowing them to overcome the weaknesses which Ethereum has been slow to rectify, namely high gas fees and slow processing times.
This article is the penultimate in the series of Crypto Moonshots from various ecosystems from Binance Smart Chain to our current stop, Polygon. View the other articles in the series here.
Last week we launched our spin off podcast Moonshot Monday Q&A. This is a follow up with projects that appeared on our weekly podcast asking them probing questions posed by our community. Listen to the founder of Candela Coin going through his paces here.
A little background to Polygon
Polygon (formerly Matic) was founded in 2017 by three Indian gentlemen to provide a scaling solution and framework for Ethereum compatible blockchain networks.
There is approximately $6.5 billion locked within smart contracts on Polygon.
Ethereum has been a victim of its own success. It’s the most used decentralized application blockchain, with the largest developer community. But the project can’t scale in its current form. That is where Polygon comes in. According to the team at Polygon;
“We believe that Ethereum is going to be the ultimate, fundamental settlement layer of this Web3 internet. So instead of providing one type of scaling solution on top of Ethereum, we should provide a suite of scalability solutions for developers to choose what they really want.”
Projects on the Polygon ecosystem
There are nearly 400 projects that have been built on Polygon. What is noticeable about this flurry of activity is the high quality of projects both building and migrating to Polygon, many of which have real world uses. Although it is also noticeable that many projects suffer from what appears to be an endemic problem right now, unrealistic valuations, meaning that investors are being asked to pay today for tomorrow’s value. That problem made it easier for us to whittle down the number of projects which met our selection criteria.
In order for a project to meet our criteria it must be:
- Realistically priced
- Have a reasonable chance of success.
Below we have selected 20 projects which look interesting and are worth further investigation. From these we have selected 4 moonshots which we believe are worth even closer attention.
20 projects worth further investigation
Moonshots in the Polygon Ecosystem
Chain Games (CHAIN)
Chain Games is an evolution in Web 3.0 blockchain gaming combining smart contract based contests with state of the art gameplay. Their multiplayer competitive platform brings eSports tournaments and cash and crypto prizes to players.
Chain Games is a relatively new platform launching its first product back in August 2020. Since then it has amassed over 10,000 players. The project is backed by an impressive management team which has already inked noteworthy deals including one with Atari. Blockchain based gaming is going to be huge, at some point, and Chain Games has a realistic chance of being one of the leaders in this space. With a fully diluted market value of $77 million Chain Games is a project worth adding to your own watch list.
Not Financial Advice
This article does not constitute financial advice or a recommendation to buy in any way. Always do your own research and never invest more than you can afford to lose. Investing in cryptocurrencies is high risk, and you could lose 100% of your investment. The article should be treated as supplementary information to add to your existing knowledge.