Key points:
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Both Loopring and Polygon are Ethereum layer-2 solutions.
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Layer-2 solutions are set to rally as Ethereum 2.0 comes to fruition.
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Polygon’s deflationary nature gives it an edge over other layer-2 solutions.
Loopring (LRC)
Loopring is a program that works on top of Ethereum’s blockchain. It seeks to make the experience using this cryptocurrency faster by processing elements from transactions itself, with super-fast speeds and low costs at just over one cent per transaction.
Polygon (MATIC)
Polygon is a system for creating and connecting blockchains that are based on Ethereum, allowing users to build their own networks with additional features. It provides scalability as well as security in comparison to other platforms out there- making it one of the most powerful alternatives available today.
Which one is a better buy?
With work towards Ethereum 2.0 almost complete, layer 2 solutions could take off in 2022. This means Loopring and Polygon, two of the largest layer 2 solutions in the market stand to reap big.
However, when only comparing the two, Polygon has more promise for gains. That’s because it is one of the largest and best known Ethereum layer-2 solutions in the market today. Polygon also has a large and fast-growing ecosystem, a factor that could drive its demand in 2022.
Besides, Polygon has a lot more big news coming up in 2022. For instance, Polygon introduced a coin burn feature in early 2022. The Polygon upgrade, which happened at block 23850000 just before made it easier for users to estimate gas prices while at the same time burning MATIC tokens with every transaction.
This is a big deal because it plays well into the demand and supply dynamics of Polygon. If Ethereum’s price action after the August 2021 hard fork is anything to go by, then Polygon’s odds of a rally this year are pretty high.