Against the backdrop of a large-scale crisis in the crypto market, investors are divided into two camps. Someone believes that the decline of cryptocurrencies is beginning and, just in case, converts their savings up to 0.000001 BTC to USD. Someone, on the contrary, carefully buys more assets, taking advantage of a rare moment of a deep fall.
Any investment strategy must necessarily provide for the diversification of assets to reduce the risk of losses. When choosing coins for your investment portfolio, you will inevitably compare their potential.
What is Polygon (MATIC)
Matic Network is a platform launched on the basis of the Ethereum blockchain in order to improve the scaling of the main network. It became possible to achieve the desired effect with the use of Plasma technology. Transactions are first processed by the second-level platform, and then the information is recorded in the main blockchain. Thus, the throughput of the system reached 7200 transactions per second.
In 2021, the platform developers rebranded. The network received a new name Polygon and new features. Based on the platform, it became possible to create second-level solutions. Tether’s decision to launch USDT on Polygon played a very important role in the development of the ecosystem.
Brief description of the MATIC coin
The platform operates its own MATIC token based on Proof of Stake (PoS). Token holders can take part in verifying transactions on the network and receive passive income.
At the time of writing, MATIC is trading just above $0.88 per coin and is ranked 10th in the ranking of the most capitalized cryptocurrencies. This is almost three times lower than the all-time high of $2.45, which was recorded last year.
At the moment, the price remains in a downtrend, but analysts still guard restrained optimism. At the first signs of a market recovery, the price of the coin may rise, which is likely to continue in the long term.
What is Cosmos (ATOM)
As cryptography develops, the problem of disunity of blockchains becomes more and more acute. The Cosmos platform was launched back in 2017 to simplify the communication and interaction of blockchains with different functions. For this, a set of tools from Tendermint, Cosmos SDK and IBC is used. It was the developers of Cosmos who were the first to utter the phrase “Internet of Blockchains”.
Later, the Polkadot project aimed at the same niche, which largely determines the future fate of Cosmos.
Brief description of the ATOM coin
The network operates its own ATOM token, based on the Proof of Stake (PoS) consensus mechanism. At the moment, the coin is trading at a price of about $10 and is ranked 22nd in the ranking of cryptocurrencies by market capitalization. ATOM is remarkable in that it does not always follow general market trends. At the beginning of 2021, the coin was worth $5.99 and then set several record highs in succession over the course of 13 months. In January 2022, another all-time high was reached when the price of the coin reached $40.
Analysts believe that despite the current bearish market trends, it is extremely unlikely that the coin will fall in price to the level of January 2021. Most likely, by the end of the year, Atom will be trading at a price of about $12.
Further price changes depend both on general market factors and on the long-term performance of the technology and the flexibility of the strategy in response to the actions of competitors. With the implementation of optimistic scenarios, ATOM has good chances for continued growth in the foreseeable future.
Which coin to choose for investment
And finally, the most important question – MATIC vs ATOM? Which coin to choose for long-term investment? Both coins are PoS based and both can be staked, which is where the similarities end. Projects occupy different niches and are assessed as suitable for long-term investment. Since there is no direct competition between them, both coins can be included in the investment portfolio as medium-risk assets.