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.
Ethereum is currently the biggest smart contract platform, and it was launched in 2015. However, the smart contract platform could not keep up with the increasing user adoption. As a result, it started facing intense congestion after some time after its launch. The leading smart contract platform could only settle 30 transactions per second, which hasn’t changed much since then.
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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)
Polygon MATIC is one of the fastest-growing ecosystems in the industry. Within a very short amount of time, it has gained a strong user base. There are hundreds of decentralized applications on its blockchain, which include decentralized exchanges, yield aggregators, lending protocols, NFT marketplaces, and games. According to DeFi Llama, Polygon MATIC currently has a TVL of $983.58 million.
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 2023
After a strong start in 2023, Polygon price has finally broken the uptrend. The price appears to be heading toward its $0.69 support area, which has resulted in multiple bounces in the past. A break below this level will make Polygon MATIC price prediction very bearish for 2023.
For the bull case, the price needs to break above the $1 psychological level. This can trigger another leg up. However, there will be a higher likelihood of another pullback from $1.20 region.
I’ll keep posting my updated Polygon MATIC price analysis in my free Telegram group, which you are welcome to join.
MATIC Price Chart – 1D
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.