- Summary:
- After a strong start to the year, Polygon Matic Price is not looking very bullish for the rest of 2023 as the bears are ganing momentum.
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Polygon Matic price has rallied a lot this year. It has become one of the best performers among the top cryptocurrencies. In the first six weeks of 2023, Polygon price had a 105% surge, leading the crypto recovery rally. However, the price action reversed as the BTC price failed to break above its 30,500 resistance.
Layer 2 blockchains are gaining traction as they provide a cost-effective environment leveraging Ethereum’s security. This makes these platforms ideal for dapp development in gaming and decentralized finance niches. There has been a massive increase in network activity across L2 networks like Polygon, Optimism, Arbitrum, and zkSync since the start of 2023.
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What is Polygon Matic?
When Ethereum faced intense network congestion, ideas for different scaling solutions immediately started to pop up. While many people proposed upgrades of the Ethereum Mainnet, some started working on Layer 2 solutions. The purpose of such L2 solutions was to take off the transaction load from the main Ethereum blockchain.
Funding for one such Layer 2 scaling solution, known as Matic Network, was raised via an ICO in 2019. The project was founded by Sandeep Nailwal, Jaynti Kanani, and Anurag Arjun. Top Ethereum Developer Mihailo Bjelic also joined them later as the co-founder. Polygon Matic price is currently trading at $1.39.
Polygon Network depends on a set of 100 validators to secure its blockchain by constantly feeding its data to Ethereum. Another set of 4-7 validators acts as the block producer to settle transactions on Layer 2, i.e., Polygon.
Polygon Total Locked Value (TVL)
According to DeFi Llama, Polygon is currently the 5th largest blockchain in terms of total locked value (TVL). The smart contract L2 holds TVL worth $794.6 million. This also makes it the second-largest Layer 2 network after Arbitrum.
In June 2021, Polygon TVL soared to $10 billion. However, it plunged as the crypto prices crashed. Currently, the total locked value is down more than 92% from its all-time high, but it still remains one of the most innovative L2s.
Polygon Matic Roadmap
The adoption stats for Matic Network exploded in 2021. After rebranding to the Polygon network in February 2021, the team also allocated a $150 million DeFi fund for liquidity mining rewards on the network. Later in June, Polygon and AU21 Capital announced another $21 million funds for the developers on the platform. As a result, Polygon Matic price increased nearly 150 folds in 2021.
The project developers appear to be not confined to only one Ethereum scaling solution. Therefore, other scaling solutions are also being developed. This includes ZK Roll-Ups and Optimistic Rolls-Ups-based solutions. Due to such an explosive network growth, Polygon Network overtook Ethereum on 27th September 2021 in the number of daily active users.
Polygon Matic Price Prediction 2024
Polygon Price started 2023 with a bang and soared 105% till the mid of February. However, the digital asset faced an intense rejection from the $1.55 level and has been in a downtrend since then. Due to the Bitcoin halving next year, analysts expect Polygon price prediction 2024 to be very bullish.
For the bull case, the price needs to break above the $1.5 resistance on the weekly timeframe. This can trigger another leg up. However, a retest of the 2022 lows will be on the cards if Bitcoin price breaks down below the $25,000 level.
I’ll keep posting my updated Polygon MATIC price analysis in my free Telegram group, which you are welcome to join.
MATIC Price – Technical Analysis
Polygon Matic Price Prediction 2025
According to Sandeep Nailwal, Matic is will soon become the 3rd biggest cryptocurrency by market cap, following Bitcoin and Ethereum. Considering the adoption of the Polygon network and extensive development on the platform, that seems entirely feasible. Moreover, the Polygon network boasts more network activity than most other blockchains. Therefore, a conservative bullish price target can be derived by comparing Matic’s market cap to Binance Coin’s. Bnb is currently the 3rd biggest crypto asset with a market cap of $71 billion.
If we put Matic at the current market cap of Binance Coin, we get a Polygon Matic price prediction 2025 of $10. The Bnb market cap hit $109 in November 2021. Imagining Matic at that price level will put Matic price at $15.
This is only possible if the Polygon network keeps leading in TVL and network activity till 2025, which is highly unlikely.
Polygon Matic Price Prediction 2030
A day in the crypto world is equivalent to a week in the real world. This seems right, considering how often narratives change in this nascent market. Unfortunately, this makes Polygon Matic price prediction 2030 hard to crack.
Millionaire tech investors like Raul Paul predicted Ethereum price to be $20,000 by the end of 2021. Unfortunately, Eth price failed to meet this prediction in 2021. Nonetheless, $20,000 is a decent conservative target for Eth price in 2030. This, if realized, could put Eth at an eye-popping market cap of $2.4 trillion.
On 13th January 2022, the MaticEth pair touched its all-time high level of 0.0008 Eth. If we consider Matic to be at the same level concerning Eth, then we get a price of $16. However, many analysts predict Ethereum to become the settlement layer for global finance. Such predictions put Eth at as high as $80,000 price level by 2030. If Matic remains the top Eth scaling solution, then Matic price prediction 2030 will increase accordingly.
Is Matic a Good Investment?
The latest network stats are generating a bullish outlook for Matic. Nevertheless, before investing in a volatile asset class like cryptocurrencies, please determine your investing duration. Based on the current user activity on the network, Matic appears to be a good investment for the medium term. The price has also hit the bottom of the pitchfork, presenting a good buying opportunity as well. However, before holding Matic for the next few years, a few factors must be considered.
The future of the Polygon network largely depends on the success of Ethereum 2.0. If Ethereum 2.0 solves most network issues, then the purpose of layer 2 solutions might die. Also, many other scaling solutions for Ethereum, like rolls ups are still in development. However, they can give Polygon Network and Matic a run for their money.