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Polygon (MATIC) has emerged as a leading Ethereum scaling solution, enabling over 3.5 billion transactions and saving around $140 million every day in Ethereum gas prices. Institutional investors in Web3 enterprises, like Reddit, have come to trust it.
Despite this success, the United States financial regulatory agencies, including the SEC, are scrutinizing the PoS-secured blockchain. SEC Chair Gary Gensler has argued that all digital assets, except Bitcoin, are unregistered securities, causing concerns for Polygon’s regulatory compliance.
In order to improve its platform, Polygon (MATIC) is also concentrating on creating scaling solutions like Polygon zkEVM, Polygon Miden, and Polygon Zero.
Polygon (MATIC) Market Outlook
According to information from defillama, Polygon (MATIC) now has a total value locked (TVL) of about $1.16 billion. Some of the top projects on the network are AAVE, Quickswap, Balancer V2, and Uniswap V3.
However, the network is up against fierce competition from other Ethereum-based scaling solutions like Arbitrum, which as of February 23 has over 2.9 million members and $440 million in ETH saved, and a TVL of about $3.36 billion.
The Polygon network, according to InvestAnswers, an anonymous host with 441,000 YouTube followers, faces stiff competition from other layer-2 solutions and might not fare well in the upcoming bull market. Although Polygon performed well in the bear market, the analyst observes that assets that perform well in the bear market may not do so in the bull market.