What is Polygon (MATIC) - How it Works, Benefits and Use Cases

Crypto Basics

What is Polygon (MATIC) - How it Works, Benefits and Use Cases

Learn everything about Polygon (MATIC) crypto including its benefits and use cases.

Token Metrics Team

7 minutes

MIN

Index

Overview of Solana Blockchain

Polygon (formerly known as Matic Network) is a protocol for building and connecting Ethereum-compatible blockchain networks. It is designed to provide faster and cheaper transactions on the Ethereum network by using side chains and an adapted version of the Plasma framework.

It also offers a wide range of:

Smart contract solutions
Secure identity solutions, and
Wallet solutions.

History of Polygon (MATIC) Crypto

The history of Polygon Matic dates back to 2017 when the project was founded by Jaynti Kanani and Sandeep Nailwal. In 2021, the project took up a rebranding and went from Matic Network to Polygon. This was done in the light of reflecting a broader focus on providing infrastructure for a wide range of blockchain use cases.

With Polygon MATIC, users can easily create and manage their own decentralized applications, securely store and transfer assets, and even trade digital assets. With its powerful features and benefits, Polygon MATIC can be a great tool for you to leverage the power of the blockchain. Find out how it can benefit you in the best ways possible below.

Benefits of Polygon

Polygon MATIC has several benefits that make it a great blockchain solution. Here are a few of its top benefits that you need to be aware of:

Scalability - Polygon MATIC has high scalability and can support millions of users and transactions. It can also scale at a very low cost. This means that it can handle high transaction volumes and can support a large user base.
Security - Polygon MATIC is a secure platform with state-of-the-art security features. You can easily secure your data and transactions on the platform through the use of the platform’s security features.
Wide range of services and tools - Polygon MATIC offers a wide range of services and tools that can benefit different types of users. Whether you are a developer, an individual, or a business, Polygon MATIC can help you with your decentralized applications and smart contracts.
Cost-effective and scalable solutions - With Polygon MATIC, you can easily and cost-effectively deploy various decentralized applications. It also offers scalable solutions that can grow and evolve with your business.

Polygon Use Cases

E-commerce and Online Retail - The Polygon MATIC blockchain can help improve e-commerce and online retail. This is because distributed ledger technology can significantly reduce the cost of transactions and make it easier for businesses to manage their supply chain.

Supply chain management - The Polygon MATIC blockchain can also help in supply chain management. It can help track shipments and provide transparency and security across the supply chain.

Gaming - The Polygon MATIC blockchain can help improve gaming through tokenization. It can also help gamers exchange their digital assets.

Healthcare - The Polygon MATIC blockchain can help in healthcare by enabling secure and immutable record storage. It can also help in improving the efficiency of health-related apps and services.

ICO and Crowdfunding - The Polygon MATIC blockchain can help improve the ICO and crowdfunding experience. It can also help in improving the tokenization process and provide transparency.

Polygon Security Features

The Polygon MATIC blockchain is a secure and reliable blockchain solution. It uses a distributed ledger technology that is decentralized and peer-to-peer. This means that there is no single point of failure and it is not controlled by a single entity. This makes it secure and reliable. When it comes to security, the Polygon MATIC blockchain has many features.

Some of these features are discussed below:

Advanced consensus algorithms - The Polygon MATIC blockchain uses advanced consensus algorithms to verify transactions. This makes it secure and reliable. These algorithms include PBFT (Practical Byzantine Fault Tolerance), VRF (Variable Resonance), and EOS consensus.
Strong authentication method - The Polygon MATIC blockchain has a strong authentication method that makes it difficult to hack or spoof. Even if someone is able to hack into the network, they can only hack a single node and not the entire network.
Encrypted communication - The communication between the nodes on the Polygon MATIC blockchain is encrypted. This makes it difficult to hack or spoof.

Polygon (MATIC) Cost

The cost of using Polygon MATIC will depend on your usage. The more you use the platform, the higher the cost will be. You can also choose to outsource your needs and use Polygon MATIC as a service.

Here are a few things you should know about the Polygon MATIC cost:

The cost of using the Polygon MATIC blockchain platform for deploying DApps is $1499.
The cost of deploying a smart contract is $599.
The cost of deploying wallets is $499.
The cost of deploying an identity and security solution is $1199.
The cost of deploying a trading platform is $1499.

Note: These prices may have changed due to change in MATIC's price.

These are the costs of using Polygon MATIC as a service. For more details on the cost, visit their website.

Polygon Crypto Alternatives

Ethereum - Ethereum is a popular blockchain platform used for developing decentralized applications and smart contracts. It is also used for ICOs and crowdfunding.
Hyperledger - Hyperledger is another popular blockchain platform used for developing decentralized applications and smart contracts.
EOS - EOS is also a blockchain platform used for developing decentralized applications and smart contracts.
Cardano - Cardano is a scalable blockchain platform that can support large volumes of transactions.

Is Polygon (MATIC) a Good Investment?

As for whether Polygon is a good investment, it's important to remember that the cryptocurrency market is highly volatile and that investing in any cryptocurrency carries a high level of risk. It's important to do your own research and carefully consider your investment options before making any decisions.

How to Buy Polygon (MATIC) Crypto?

If you're interested in buying MATIC, you can do so on a number of cryptocurrency exchanges that offer it. Some popular options include Binance, Coinbase, and Kraken. Be sure to carefully compare the fees and features of different exchanges before choosing one to use. Below are the 5 simple steps that you can follow to get your own Polygon:

Choose a Crypto Exchange Broker
Create your account (Crypto Wallet)
Link your Bank Account to your wallet
Pick the Cryptocurrency you want to invest in
Choose your storage method

Great, but, do we know where Polygon is headed in the future?

Future of Polygon (MATIC)

It's difficult to predict the future of Polygon with certainty, but the project has gained significant traction in the cryptocurrency community and has the potential to continue growing and gaining adoption in the future. However, as with any investment, it's important to be aware of the risks and to carefully consider your options before making any decisions.

The Bottom Line

Token Metrics is happy to provide you with AI-driven market updates and information regarding the crypto world but it is you who needs to be the decision maker when it comes to your crypto investments.

Polygon (formerly Matic Network) offers innovative technology that could potentially democratize blockchain through the creation of customized, interoperable networks. While it's difficult to predict the future performance of MATIC, the project has a strong team and partnerships with well-known companies.

However, as with any cryptocurrency investment, there is a high level of risk and it's important to carefully consider all options before making any decisions. Blockchain technology is still in its early stages and it may be more profitable to invest in the technology itself rather than just the hype. It's also important to exercise caution when building a cryptocurrency portfolio.

Disclaimer: The information provided on this website does not constitute investment/trading/financial advice and you should not treat any of the website’s content as such. Token Metrics does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions. We only offer comprehensive information which may change according to time.

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Bearish Signals Ahead? How to Spot Early Warnings Before a Crash

Token Metrics Team

4 min

MIN

In crypto, everything can change overnight. One minute the market’s bullish — the next, it’s bleeding red. That’s why the ability to spot bearish signals early is crucial for protecting capital and maximizing long-term gains. Token Metrics gives traders an edge with AI-driven alerts that help you act before the crash hits.

Why Most Traders Miss the Top
Retail traders often get caught in the hype. By the time “everyone” is talking about a token, it’s usually too late. The smartest investors are watching subtle changes in data: volume drops, negative sentiment, weakening momentum.

Token Metrics makes those patterns visible before price crashes.

What Is a Bearish Signal on Token Metrics?
A bearish signal is a warning based on:

Declining Trader Grade (below 30)
Negative ROI since signal
Volume drying up while price holds
Bearish crossover in trend indicators
Weakening fundamentals or fading narratives

These signals are automatically triggered and displayed on the Market Page.

How to Identify Bearish Tokens Early

Sort by Negative ROI – See which tokens have declined most after a bold signal.
Filter by Trader Grade < 30 – These are tokens losing short-term momentum.
Look for Divergence – If price is flat but volume or sentiment drops, the setup may be turning bearish.

Behavioral Clues You Shouldn’t Ignore

Signal stops updating – Token Metrics halts signals when confidence fades.
Narrative dies down – No more tweets, community quiets down? Trouble ahead.
Trending to Stagnant – Tokens drop from Top Gainers list quickly.

Real Example: Avoiding Losses with Signal Data
Ian Balina mentioned how users avoided major losses by exiting weak tokens early thanks to falling grades and bearish signals. Instead of hoping, they acted — preserving capital and rotating into stronger plays like Launch Coin or AI tokens.

What to Do When You See Bearish Signs

Don’t panic – Act on data, not emotion.
Set stop-losses based on bold signal entry points.
Rotate capital into high-grade tokens or stablecoins.
Monitor daily – The market can flip from bullish to bearish in hours.

Combining Risk Management with Signals
Token Metrics isn’t just about finding moonshots. It’s also about knowing when not to buy or when to exit early. By using bearish signals, you protect yourself from downside while staying positioned for the next big opportunity.

Conclusion
The best crypto traders aren’t just profit-hunters — they’re risk managers. Bearish signals from Token Metrics help you anticipate weakness, reduce losses, and trade with clarity. In a volatile market, that edge can make all the difference.

Research

From Retail to Institutions: Who’s Driving the Crypto Market in 2025?

Token Metrics Team

4 min

MIN

Crypto markets are evolving — and fast. In the early days, retail investors dominated the space. But by 2025, the tides are shifting. Institutional investors, family offices, and algorithmic funds are entering the market at scale. This blog explores the growing divide — and how it’s reshaping opportunities for everyday traders.

The Rise of Institutional Money in Crypto
Over the last year, a new class of investors has emerged: professional firms with deep pockets and long-term horizons. They're no longer just “exploring crypto” — they’re actively deploying capital.

Why now?

Regulatory clarity in major jurisdictions
Bitcoin ETF approvals and crypto fund launches
Better custody, risk management, and analytics tools (including Token Metrics)

What Are Institutions Buying?
Institutions tend to avoid meme coins and hyper-volatility. Instead, they focus on:

Layer 1 Infrastructure – Ethereum alternatives like Sui and Avalanche
AI Tokens – Leveraging real-world utility and strong narratives
DeFi Blue Chips – Projects with consistent TVL and governance upgrades
Stable Yield Strategies – On-chain bonds, staking, and real-world asset tokens

Token Metrics has seen a spike in institutional users filtering by Investor Grade and project fundamentals.

Retail Traders Still Dominate One Arena
Retail traders are far from out — they dominate high-volatility narratives:

Meme tokens
Social coin launches (e.g., Launchcoin)
Short-term speculation based on influencer sentiment

Retail’s edge? Speed, risk tolerance, and virality. Many of Token Metrics’ bold signals still originate from this activity before institutions catch on.

Token Metrics Bridging the Divide
What makes Token Metrics powerful in 2025 is its ability to serve both segments:

Institutions use it for due diligence, grades, and long-term planning.
Retail traders use it for short-term signals, alerts, and narrative tracking.

This dual capability creates a level playing field, where data, not capital, is the edge.

How to Trade Based on Who’s in Control

When institutions lead – expect slower but more sustainable growth. Focus on high Investor Grade tokens.
When retail leads – expect fast-moving pumps and dumps. Use high Trader Grade + bold signals.
Hybrid phase (now) – Use both metrics to balance volatility and long-term conviction.

Market Behavior Patterns to Watch

Low volatility + high inflows → Institutional buildup
High volume + sudden spikes → Retail-driven narratives
Diverging BTC vs. altcoin trends → Mixed sentiment cycles

Conclusion
The crypto market in 2025 is being driven by both the old guard and the new wave. Institutions bring maturity. Retail brings momentum. Smart investors use tools like Token Metrics to read the room — and position themselves accordingly.

Research

Trader vs. Investor Grade: How to Use Both for Smarter Crypto Bets

Token Metrics Team

4 min

MIN

Crypto trading success often boils down to timing. But how do you know when to enter — and when to stay long? Token Metrics solves this dilemma with a dual-grade system: Trader Grade and Investor Grade. Each grade serves a different investment goal, and together, they help you make more confident decisions, whether you’re day trading or holding for the long run.

What is the Trader Grade?
The Trader Grade measures short-term momentum. It uses AI to analyze price action, volume trends, technical indicators, and recent sentiment shifts. Scores range from 0 to 100, and a score above 80 signals strong short-term potential.

Use Case:

Perfect for swing traders and short-term opportunists.
Look for tokens with Trader Grade > 80 for potential breakout trades.
Example: Launchcoin had a Trader Grade above 90 before its 35x rally began.

What is the Investor Grade?
The Investor Grade focuses on long-term fundamentals. It’s designed for those who want to hold tokens for months or even years. This grade considers tokenomics, development activity, ecosystem strength, narrative alignment, and long-term price structure.

Use Case:

Ideal for long-term portfolio builders.
A token with Investor Grade > 80 is a strong candidate for accumulation.
AI infrastructure tokens and modular blockchains often rank high here.

Why Use Both?
Most traders fail by only looking at hype or short-term charts. Token Metrics lets you blend data:

High Trader Grade + Low Investor Grade? Consider a short-term trade, not a long hold.
High Investor Grade + Low Trader Grade? Consider waiting for a better entry point.
Both High? Green light for confidence in both entry and long-term performance.

Case Study: Balancing Your Portfolio with Grades
Users can use the dual-grade approach for smarter allocation:

30% of capital to high Trader Grade tokens (short-term plays)
70% to high Investor Grade tokens (long-term holds)

This method helps mitigate risk and improve overall ROI.

Where to Find the Grades
Both grades are displayed prominently across:

Token Detail Pages – Real-time grade updates with historical data
Market Page Filters – Sort tokens by grade thresholds
Portfolio Builder Tool – Automatically selects tokens with strong grades

Tips for Grade-Based Trading

Use Trader Grade for volatile markets or when prices are accelerating.
Use Investor Grade when building positions in strong narratives like AI, DeFi, or infrastructure.
Avoid tokens with both grades below 60 unless you’re making a speculative bet.

Conclusion
Trading without context is gambling. Token Metrics’ Trader and Investor Grades give you a proven framework for assessing both momentum and fundamentals. Whether you’re here for a quick flip or a long-term bet, using the dual-grade system can level up your crypto strategy.

Token Metrics Media LLC is a regular publication of information, analysis, and commentary focused especially on blockchain technology and business, cryptocurrency, blockchain-based tokens, market trends, and trading strategies.

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All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Ratings and price predictions are provided for informational and illustrative purposes, and may not reflect actual future performance.