Does change in price of ethereum effects Matic?


Yesterday, on October 8th, 2018, the price of Ethereum dropped below $200, causing some concern among Matic Network users and fans. While no one can predict future prices with absolute certainty, we’re here to reassure you that this drop will not affect Matic.

1. Previous Ethereum Price Predictions

Ethereum is currently the second largest cryptocurrency by market cap. As of this writing, one ether is worth $316.72. On January 13, 2018, ether was worth only $830.59. This is a significant drop in price in such a short amount of time. So, the question on everyone’s mind is: does this drop in price affect Matic? The answer is complicated. To understand why, we need to take a look at the history of Ethereum.

2. How Matic Lowers Gas Fees

The Ethereum blockchain is currently facing scalability issues. This is because the number of transactions that can be processed on the blockchain at any given time is limited. As the popularity of Ethereum grows, so does the number of transactions waiting to be processed. This leads to long wait times and high transaction fees. Matic is a Plasma-based blockchain that is designed to overcome the scalability issues faced by the Ethereum blockchain. Matic Network introduces a Layer 2 scaling solution that allows for near-instant transactions and low transaction fees. Matic also uses Proof of Stake for security, which is more efficient and secure than Proof of Work. This makes Matic a more viable solution for running decentralized applications on the blockchain.

3. How EOS and Tron Compare with Matic

Ethereum, EOS, and Tron are all blockchain platforms that are trying to solve different problems in the space. Ethereum is the original platform and is focused on smart contracts. EOS is a platform that is trying to be more user-friendly and has faster transactions. Tron is focused on creating a more decentralized internet. Matic Network is building on top of these platforms to provide scalability and security. The recent drop in the price of Ethereum does not affect Matic as we are building on top of other platforms.

4. Matic Sidechains vs. Plasma Chains

Plasma chains are a proposed solution to the scaling problem that Ethereum faces. They are effectively a second layer on top of the Ethereum blockchain that allows for more transactions to be processed at once. This is done by splitting up the transactions into smaller pieces that are then processed in the plasma chains. This allows for the main Ethereum blockchain to remain secure. Matic is planning to use plasma chains in order to improve their scalability. The recent drop in the price of Ethereum has not affected Matic as they are still in the development stages.

5. What You Can Build on Matic

Matic is more than just a platform for decentralized applications. It’s also a platform for developers who want to build more efficient and user-friendly applications. With Matic, developers can quickly and easily deploy scalable decentralized applications without worrying about the underlying infrastructure. And unlike other platform providers, Matic doesn’t charge any fees for using its platform. The recent drop in Ethereum’s price doesn’t affect Matic because Matic is built on top of the Ethereum network. In fact, the Matic team is working hard to make Matic even better and more user-friendly. We’re excited to see what developers will build on Matic in the future!


The recent price drop of Ethereum does not affect Matic as the design was made with the purpose to lower gas fees and give developers a simple way to build scalable applications. Matic uses sidechains instead of plasma chains and there is no effect on transaction times or scalability.

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