Recently, the price of Matic impressed with the surge speed. So far, Matic remains one of the currencies showing explosive growth at the end of 2021. Today many investors have turned their eyes to it and intend to include it in their crypto investment portfolio. But is everything so rosy? Let’s get to the bottom of it.
First, let’s remember what the Polygon project is all about. After all, it is the project, its potential, and the background that determines interest in the currency and trust in it among the community.
What is Polygon (Matic): price prediction prerequisites
We recently described the Polygon project in detail, but here’s a quick recap.
Polygon is a protocol and framework for building and connecting Ethereum-compatible blockchain networks. It is a Layer 2 solution for Ethereum and stand-alone sidechains networks that aim for scalability and lower transaction costs.
Polygon was created by developers with previous experience in the Ethereum project. The project is not positioning itself as a competitor to Ethereum. Rather, as a partner to help solve the latter’s troublesome issues: low scalability, slow transactions, and high gas fees.
Among the interesting features of the project are template solutions for the simple creation of customized blockchains, the idea of ‘security-as-a-service’, solutions for interoperability of existing blockchain networks.
Importantly, the company started out as a Layer 2 solution for Ethereum but has since changed vectors and provides solutions for creating networks of secure, autonomous sidechains compatible with Ethereum and other blockchains, the Internet of Blockchains, in fact.
In essence, it’s a cheaper, high-speed alternative to Ethereum. Polygon allows the creation of a customized blockchain network, combining the perks of autonomous blockchains (sovereignty, scalability, and flexibility) with Ethereum expertise.
What is Matic coin: price prediction reference
Matic is the native coin of the Polygon blockchain network for intra-ecosystem commissions and staking.
The total supply is 10 billion. As of the date of this article, more than 70% of the full coin emission has been released to the market. Of these, about 5 billion are at the stake.
The protocol includes a deflationary mechanism to burn off some of the fees.
The market capitalization of Matic as of early 2022 is about $17bn with the coin‘s price at around $2.5. This puts the coin in 14th place in the market capitalization ranking (according to Coinmarketcap).
Price, exchange rate, volatility
Matic is a volatile cryptocurrency. Its price at the beginning of the launch (May 2019) was less than 1 cent. Then, in early 2021, after a rebranding (Matic Network –Polygon), there was a sharp surge in price. It peaked in December 2021, rising to $2.8.
At the time of writing, the price of Matik is around $2,5 but remains highly volatile.
Evaluation criteria
Having briefly recalled the essence of the project and the basic data about Matic cryptocurrency, let’s figure out if it is worth considering for investment.
In a previous article, we suggested a list of criteria for evaluating an asset in terms of its investment appeal. That’s what we will apply.
- high liquidity – yes. Matic is traded on plenty of exchanges in pairs with cryptocurrencies and fiat;
After buying an asset on an exchange, remember to withdraw your coins to a more secure wallet, such as Trustee Wallet, for safe storage and easy transactions.
- exchange rate stability – yes. Matic by no means is an example of price stability, but it shows growth during all of 2021;
- market capitalization – high. Matic is number 14 in the overall ranking;
- developers’ credibility – sufficient. The development team has a good background in the Ethereum ecosystem, is actively blogging and social networking, and is open to the community;
- the project’s practical utility – yes. Ready-to-deploy, interoperable, secure, fast, and cheap networks are being developed;
- limited issuance – yes. A limited number of Matic coins (10 billion) and their periodic burning are envisaged.
On the last two points (high investors’ and crypto community’s interest and expert opinion) let’s focus on more detail.
Polygon and partnerships
One of the signs of a crypto project’s “bright future” is the interest of high-profile investors and potential partners in the startup. For Polygon, 2021 was literally a groundbreaking year. Many milestone contracts and collaborations have been made.
The most interesting ones are:
- Partnerships with Aavegotchi, Curve, Aave, SushiSwap, Balancer, Coinbase, RECUR,
- Mark Cuban invests in Polygon.
- Decentraland and Sandbox chose Polygon as a scaling solution.
- The world’s largest NFT marketplace OpenSea integrated with Polygon.
- Ernst & Young (EY) and Polygon announced a joint project to develop and deploy scalable and enterprise solutions for the Ethereum ecosystem.
- Polygon acquired startup Mir Protocol and Hermez Network platform
- Uniswap has moved to Polygon.
- Wormhole announced the launch of a bridge with Polygon‘s blockchain. This will allow tokens and NFTs to be moved between Polygon, Solana, Ethereum, Binance Smart Chain, and Terra networks.
- Despite the lack of a clear roadmap, the project continues to evolve, constantly announcing new technological solutions to the community.
Expert opinion
Most experts lean towards the idea that Matic will continue to grow in value in 2022. Their arguments mainly boil down to the fact that the community sees value in the project and believes in achieving its goals.
At the same time, it must not be forgotten that the introduction of ETH 2.0 will have an impact on the speed of development of the Polygon platform and its competitiveness. However, no one can say when exactly that will happen.
To hedge risks, developers have already moved beyond the Ethereum ecosystem and look at building sidechains that are compatible with other blockchains as well. That looks like a promising trend.
Matic (Polygon) price prediction and forecasts
Now about numbers (you can see review of forecasts made by experts and services, based on technical analysis algorithms).
Cryptoanalyst Lark Davis states that Polygon token (Matic) has a potential of “explosive” growth. In the near future, the altcoin price could surpass $10 (up 354% from current levels).
Gov Capital: in 1 year Matic price will be $4.26; in 5 years Matic will be $12.5
Wallet Investor: 1-Year Forecast $4.204; 5-Year Forecast $12.447.
Digital Coin is more conservative in its forecasts: by the end of 2022, Matic will stand at $3.36, while it will reach $10 in 2029.
In any case, when making an investment decision, it is worth keeping in mind that analysts could be mistaken in their technical and fundamental analysis.
Today’s performance is no guarantee for tomorrow‘s results. It is impossible to take into account all the circumstances and influencing factors on a crypto-asset’s exchange rate.
Do your own research, think for yourself, consider your attitude to risk and your own experience, as well as your perception of the potential money loss. You should never invest money that you cannot afford to lose.
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