A well-liked crypto analyst is issuing a warning in regards to the Ethereum (ETH) layer-2 scaling resolution Polygon (MATIC).
The nameless host of InvestAnswers tells his 441,000 YouTube subscribers that Polygon faces a “assassin’s row” of layer-2 competitors, particularly mentioning Arbitrum as a “main competitor.”
He additionally says he’s involved that Polygon pays for non-fungible token (NFT) initiatives to make use of its resolution. Moreover, the host mentions that he thinks Polygon’s pace, inflation and “heavy” whale focus are all additionally pink flags.
“Sure, [Polygon] did do very nicely within the bear market, however issues that usually do nicely within the bear market don’t do nicely within the bull market, and that is also true from historical past. Take a look at Chainlink in 2018, have a look at it in 2022. It’s an excellent analog.”
The analyst notes that he swapped 65% of his MATIC for Ethereum competitor Solana (SOL).
MATIC is buying and selling at $1.22 at time of writing. The Tenth-ranked crypto asset by market cap is down greater than 4% up to now 24 hours however up practically 8% up to now month. It stays greater than 58% down from its all-time excessive of $2.92, which it hit in December 2021.
Final week, Polygon Labs introduced it was shedding roughly 100 of its workers, 20% of the undertaking’s workforce.
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