The host of popular crypto analytics and market commentary show Coin Bureau says that Polygon is positioned to benefit from Ethereum’s transition to a PoS.

Some people refer to Polygon as Ethereum's sidechain, while others call it the L2 blockchain. Anthony Sassano, who joined Polygon as a consultant, made some statements on Twitter to clear up this confusion about Polygon.

   “There is the Matic Plasma Chain and the Polygon PoS chain. The vast majority of the activity takes place on the PoS chain.”

   "The PoS chain is what people refer to as the "sidechain" for Ethereum because it has its own set of permissionless validators (100+ tokens MATIC), which means it doesn't use Ethereum's security (aka Ethereum's PoW) "

   “The PoS chain goes beyond a standard sidechain and actually relies on and dedicates itself to Ethereum (some people might call it a 'commitment chain'). All validator/stake logic for the PoS chain is based on Ethereum as it lives on Ethereum as a smart contract."

   “This means that if the Ethereum network goes offline, the Polygon PoS chain will also go offline. Second, the PoS chain actually commits itself to Ethereum frequently/creates checkpoints.”

   “This has 2 benefits: It provides Ethereum-based certainty to the PoS chain and can help the chain recover in case of disaster. This also means that Polygon pays Ethereum to use its block space (in ETH) and to secure contracts and checkpoints."

polygon eth update

During a YouTube video released on March 31, Coin Bureau channel host "Guy" told viewers that Polygon will rally alongside Ethereum's highly anticipated upgrade.

Guy noted that Ethereum's transition to proof-of-stake will have "minimal impact" on the scalability of the smart contract network, thereby increasing demand for other Layer 2 solutions such as Polygon.

   “[The upgrade] will increase demand for Ethereum, which will make it even more difficult to use. This means that layer-2s may soon be needed more than ever, and Polygon will be perfectly positioned to make a profit.”

The analyst argued that $MATIC, which did not appreciate in price last year, was limited by the increasing supply. Guy showed that the circulating supply of MATIC has increased by nearly 600 million coins in the last four months as a result of the project's vesting schedule.

Guy concluded that the Polygon foundation has put a significant amount of selling pressure on the altcoin, thus limiting its price performance over the past year. Despite predicting a rally following the Ethereum upgrade, Guy was cautious in his price outlook for MATIC.

   "This paints a pretty bad picture for MATIC's price potential, but it ultimately depends on the demand that can be created by upcoming milestones on the Polygon roadmap."