- Polygon co-founder Sandeep Nailwal has contended that 2023 has been rough for the project.
- The founder nonetheless implies that the project will make a comeback.
- Nailwal’s sentiments followed a year in which Polygon Labs and MATIC struggled.
2023 has seen excitement return to the crypto space after a tumultuous 2022. However, not all projects have been able to garner significant momentum from the fresh tailwinds. Polygon co-founder Sandeep Nailwal recently noted that this has been the case for the popular Ethereum scaling project.
Nailwal Puts Polygon’s 2023 in Review
In an X post on Sunday, December 24, Nailwal contended that Polygon was again the “underdog” after “a painful ride” in 2023.
Embracing the label, however, the Polygon Labs executive chairman implied that the only way left for the prominent Ethereum scaling project to go was up. “It feels incredibly liberating to be the underdog again,” he asserted.
Nailwal’s comments depart from the largely positive view that most major crypto projects and communities undoubtedly hold of 2023. They come amidst layoffs carried out early in the year and the continued price struggles of MATIC, the native token of the Polygon Proof-of-Stake (PoS) chain.
A Slow Year for Polygon (MATIC)?
In February 2023, Polygon Labs, the startup behind the Polygon ecosystem, announced that it was cutting 20% of its staff, as several major crypto firms engaged in layoffs on the back of a chilly crypto winter that had led to a plunge in the value of most crypto assets.
In an attempt to dispel concerns, Nailwal had argued the project still boasted a healthy war chest of $250 million in cash and 1.9 billion MATIC. However, this disclosure only sparked further questions, as the startup had raised $450 million in 2022, suggesting it had burned through $200 million in just one year. This inference led many to speculate that Polygon Labs would be forced to dip into its MATIC reserves to stay afloat.
Amid the uncertainty and disinterest, MATIC’s price has remained largely muted while most other major crypto assets have recorded upwards of 50% gains year-to-date (YTD). At the time of writing, MATIC is trading just above $0.86, just about 13% higher than its opening price of about $0.76 on January 1.
On the Flipside
- Polygon Labs has made advancements with Zero Knowledge technology in 2023, launching the Polygon zkEVM in March and the Chain Development Kit (CDK) in August. The project’s new roadmap intends to transform it into a ZK-powered Layer 2 chains network to scale the Ethereum network infinitely. The vision has attracted big names like OKX and Flipkart.
- Polygon has inked more big brand partnerships in 2023, with a catalog boasting names like Lufthansa and Mirae.
Why This Matters
Polygon co-founder Sandeep Nailwal’s statements highlight the uncertainty that has plagued the project in 2023 while also hinting at the determination to make a comeback.
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