Polygon Network: Venture Capitalists Plan Investment

Several venture capitalists (VCs) are considering backing the Ethereum layer 2 solution Polygon network with funding. The investment could be as much as $50 million to $150 million according to a TechCrunch report on Monday.

The report suggests that Sequoia Capital India, Steadview Capital, and several other unidentified VCs will invest in the network. The investment will be done by purchasing MATIC tokens. The tokens, which are the native currency of the Polygon network, will be obtained at a cheaper cost than the market price.

What the Polygon Network is all About

Polygon network is a layer 2 solution designed to speed transactions. For an Ethereum network otherwise plagued by congestion and huge traffic fees, Polygon solves the problems associated with scalability on the chain. It’s not surprising that Polygon’s active addresses count briefly surpassed Ethereum after a 330% surge in userbase in September.

Polygon has a market capitalization exceeding $14 billion and processes over 7.5 million transactions daily. The firm allows thousands of decentralized apps to use Ethereum without the associated high gas fees. These dapps are the same that Twitter recently appointed a team to research into. It has played host to some blue-chip projects including Aave, Sushi Swap, and Curve Finance. This makes the network one of the largest developer hubs on Ethereum.

Thus, Polygon is among dozens of side-chains and roll-up networks that are hopeful that Ethereum will continue its dominance. These layer 2 solutions will certainly be the biggest benefactors when Eth 2 kicks of fully in 2022.

If the investment goes as planned, it would signify that South Asian Venture Capitalists are now developing confidence in the Polygon network. This in itself is an achievement that has proven elusive. Previously, there has been at least one case when early investors requested to have their money back after a bearish run according to the report.

At the time of writing, MATIC was trading at $2.11 according to Coinmarketcap.com