Polygon (MATIC) might sound like a geometric term, leading many to wonder, “What is a Polygon?”, in the cryptocurrency world. Polygon (MATIC) is a Layer-2 scaling solution for Ethereum.
It is a separate blockchain network that works alongside Ethereum to provide faster and cheaper transactions. In fact, Polygon connects with Ethereum so closely that swapping between the two is straightforward through bridges and exchanges.
In simple terms, Polygon aims to enhance Ethereum’s performance. It achieves this by processing transactions on its own network and then finalizing them on Ethereum.
This reduces congestion on Ethereum and dramatically lowers fees. Polygon’s native token, Polygon (MATIC), plays a central role in this system, as it is used to pay fees, secure the network, and participate in governance.
The close integration with Ethereum makes it easy to find MATIC/ETH trading pairs on many exchanges.
History of Polygon
Polygon began in 2017 as the Matic Network in Mumbai, founded by Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic. After a 2019 IEO on Binance, it launched its Proof-of-Stake mainnet in 2020.
In 2021, Matic rebranded to Polygon, expanding into a multi-solution scaling platform. The team integrated zk-rollups via the Hermez acquisition and raised $450M in 2022. By 2023, Polygon Labs and the Polygon Foundation were launched.
In 2024, the MATIC token was upgraded to POL, transitioning its role in governance and gas fees to support long-term scalability and network evolution.
MATIC Basics
MATIC is Polygon’s native cryptocurrency, launched as an ERC-20 token on Ethereum with a fixed supply of 10 billion. It’s used for transaction fees, app interactions, staking, and governance.
Polygon runs on a Proof-of-Stake model, allowing MATIC holders to earn rewards by validating the network. A MATIC to ETH transfer is an almost effortless action, implying burning tokens on Polygon and releasing the original tokens on Ethereum via the bridging process.
In 2024, MATIC was upgraded to POL, which now handles the same functions – fees, staking, and governance – ensuring continuity and future scalability. Existing MATIC tokens can be swapped 1:1 for POL, with most of the ecosystem still referring to it as MATIC.
The Polygon Founders
- Jaynti Kanani: Co-founder and former CEO. A blockchain engineer who helped implement Web3 and Plasma on Ethereum, he co-founded Polygon after experiencing Ethereum’s scalability issues.
- Sandeep Nailwal: Co-founder and current operating head. A developer and entrepreneur, he leads product and ecosystem growth and also organized India’s COVID-19 crypto relief fund.
- Anurag Arjun: Co-founder and Chief Product Officer. With a background in product management, he oversees Polygon’s strategy and brings a user-focused business perspective.
- Mihailo Bjelic: Co-founder. A Serbian software engineer and Ethereum researcher, he contributed to Polygon’s architecture and its adoption of zero-knowledge scaling solutions.
What is Polygon (MATIC) Current Price?
As of May 2025, MATIC price is around $0.25 per token. It peaked at approximately $1.29 in March 2024 before declining amid broader market downturns.
Despite volatility, it maintains a multi-billion-dollar market cap and remains central to Polygon’s ecosystem, now operating under the upgraded POL token.
How Does Polygon Work?
Polygon functions as a sidechain to Ethereum, processing transactions independently while anchoring security through Ethereum checkpoints. It uses a Proof-of-Stake consensus where validators stake MATIC (POL) to confirm blocks.
Transactions are bundled and regularly committed to Ethereum, making Polygon a trusted scaling layer. Asset transfers (MATIC to ETH) between networks are seamless via Polygon’s official bridge, which locks tokens on Ethereum and mints equivalents on Polygon.
Users benefit from faster, cheaper transactions using tools like MetaMask. Developers can build additional chains or adopt various scaling models through Polygon’s SDK, making it a flexible, Ethereum-compatible framework for building interconnected blockchain solutions.
Why Use MATIC?
Polygon offers clear benefits for users and developers alike:
- Low fees and fast transactions: Most transfers cost under a cent and confirm in seconds, ideal for DeFi, games, and NFTs.
- Ethereum compatibility: Polygon supports Ethereum smart contracts, tools, and wallets, easing swapping assets via MATIC/ETH pairs or bridges.
- Wide dApp adoption: Major platforms like Aave and OpenSea run on Polygon, with MATIC used for fees, staking, and collateral.
- Staking and governance: Users can stake MATIC (or POL) for rewards and to vote on upgrades.
- Scalable infrastructure: Developers build high-throughput apps on Polygon without Ethereum’s congestion or costs.
Pros and Cons of Polygon
Like any blockchain platform, Polygon has its strengths and weaknesses. Here is a balanced look at its pros and cons:
Pros of Polygon:
- Low fees: Most transactions cost under $0.01, making it highly economical.
- High throughput: Polygon handles many transactions per second, ensuring fast confirmations and a smooth user experience.
- Ethereum-compatible: Developers can easily migrate apps, and users benefit from familiar wallets and tools.
- Rich ecosystem: Backed by major players like Binance and Coinbase, Polygon hosts a wide range of DeFi, NFT, and gaming dApps.
- Flexible scaling: Polygon supports multiple technologies – PoS, Plasma, zk-rollups – allowing developers to choose the best fit for their app’s needs.
Cons of Polygon:
- Ethereum reliance: As a Layer-2, Polygon depends on Ethereum’s security and uptime. Bridging also incurs Ethereum gas costs.
- Centralization risks: A limited validator set and past use of multisig controls raise concerns about decentralization.
- Bridge complexity: While efficient, cross-chain bridges carry risks and require trust in smart contracts.
- Tough competition: Competing Layer-2s like Arbitrum and Optimism push Polygon to keep evolving or risk losing developer interest.
- Limited token utility: MATIC/POL is mainly used for fees, staking, and governance – its value is tightly tied to network demand and usage.
What Makes Polygon Special
Polygon stands out for its multi-chain architecture, designed to scale Ethereum by enabling multiple interoperable chains. Unlike single-solution platforms, it functions as an “Internet of Blockchains,” similar to Polkadot or Cosmos, but with the added advantage of Ethereum’s security and ecosystem.
Its early mover advantage gave it a large user base and real-world adoption before many competitors entered the space. Polygon was among the first to address Ethereum’s congestion issues effectively.
The project also integrates diverse scaling technologies—from PoS sidechains to zk-rollups like Polygon Hermez and zk-STARKs via Polygon Miden—highlighting its commitment to innovation. The introduction of the zkEVM and POL token further reflects its forward-looking approach.
Strong industry support enhances its credibility. Major exchanges, wallets, and DApps back Polygon, and global brands like Reddit and Ubisoft have used it for NFT minting. Its carbon-neutral status also appeals to sustainability-focused developers and users.
