Is Ethereum’s ‘Merge’ a threat to L2 solutions like Polygon

ambcrypto.com:

He who reigns within himself and rules his passions, desires, and fears is more than a king.

Does this quote from ‘Paradise Regained’ connote Ethereum’s ‘Merge’ in any way? Well, yes, only if ‘passion, desire, and fears’ are taken for scalability. As Ethereum awaits its transition to Proof-of-Stake (PoS), investors are wondering if the ‘Merge’ will invalidate Polygon’s use cases.

It may be noted that Ethereum’s switch to PoS might give a boost to layer-2 scaling solutions like Polygon. Many believe, the ‘Merge’ might not have a great effect on Ethereum’s scalability. Consider this- After the ‘Merge,’ the demand for Ethereum will see a sharp spike.

Now, because of the traffic, users might find it harder to use Ethereum. In which case, layer-2 platforms might witness a lot of traction which will eventually translate into demand. Keeping this factor in mind, it seems that Polygon is perfectly positioned to profit. In fact, it seems MATIC holders would benefit massively from Ethereum’s transition to PoS.

On 19 January 2022, EIP 1559 upgrade was introduced to Polygon’s PoS which has seen over 600k MATIC being burned so far. Furthermore, in early February, the network raised $450 million from various crypto venture capitalists. And, on 24 March, Polygon announced that two massive product releases were coming up shortly. All this goes on to assert that the macro outlook for the token can’t be bearish, to say the least.