A popular crypto analyst is issuing a warning about the Ethereum (ETH) layer-2 scaling solution Polygon (MATIC).
The anonymous host of InvestAnswers tells his 441,000 YouTube subscribers that Polygon faces a “murderer’s row” of layer-2 competition, specifically mentioning Arbitrum as a “major competitor.”
He also says he’s concerned that Polygon pays for non-fungible token (NFT) projects to use its solution. Additionally, the host mentions that he thinks Polygon’s speed, inflation and “heavy” whale concentration are all also red flags.
“Yes, [Polygon] did do very well in the bear market, but things that typically do well in the bear market don’t do well in the bull market, and that also is true from history. Look at Chainlink in 2018, look at it in 2022. It’s a very good analog.”
The analyst notes that he swapped 65% of his MATIC for Ethereum competitor Solana (SOL).
MATIC is trading at $1.22 at time of writing. The 10th-ranked crypto asset by market cap is down more than 4% in the past 24 hours but up nearly 8% in the past month. It remains more than 58% down from its all-time high of $2.92, which it hit in December 2021.
Last week, Polygon Labs announced it was laying off roughly 100 of its employees, 20% of the project’s workforce.
I
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Generated Image: Midjourney
Featured Image: Shutterstock/Voar CC
