MATIC price prediction: Can Polygon’s new features boost its price?

MATIC price prediction: Can Polygon’s new features boost its price? Matic (MATIC) Abstract Cryptocurrency. With a dark background and a world map. Graphic concept for your design. MATIC price prediction: Can Polygon’s new features boost its price? Photo: Comdas / Shutterstock.com

Polygon’s native cryptocurrency, MATIC, has been struggling since the start of 2022. Its value has fallen  by nearly 80% since its all-time high level achieved last year.

Polygon’s “Green Manifesto” – a pledge to make the blockchain universe more eco-conscious – remaining the network’s biggest news.

The green transition and the launch of a number of new features, like gas-free non-fungible token (NFT) minting, have the potential to make Polygon a competitor to similar blockchains like Ethereum. 

Can the token get back on a growth trajectory, and what’s in store for the Polygon (MATIC) price prediction in 2022 and beyond?

What is Polygon crypto?

Polygon, previously known as Matic Network, is the first easy-to-use platform for Ethereum scaling and infrastructure development. Founded by Jaynti Kanani, Sandeep Nailwal, Anurag Arjun and Mihailo Bjelic in 2017, it wants to make Ethereum a “full-fledged multi-chain system”.

In the last couple of years, ether (ETH) has become the second biggest cryptocurrency by market capitalisation and the leader in decentralised finance (DeFi) due to its compatibility with smart contracts, which make building decentralised applications (dApps) easy. 

However, ETH’s growing popularity has also made the blockchain hard to use amid rising gas fees and excessive traffic. That, in addition to low throughput and no sovereignty, has led to the creation of Polygon.  

Using the slogan “built by developers, for developers”, Polygon has managed to combine all existing Ethereum tools with faster and cheaper transactions. 

Polygon’s key features include:

  • Fast, cheap and safe transactions on Polygon sidechains that are finalised on the Ethereum mainchain 

  • High throughput and multi-chain transactions 

  • Smooth user experience 

  • Public sidechains that support a number of protocols

So far, Polygon has released four scaling solutions:

  • Polygon PoS – a Layer 2 scaling solution that achieves great transaction speed and cost savings

  • Polygon Hermez – a Layer 2 construction on top of Ethereum that solves its scalability issues

  • Polygon Edge – allows users to run their own blockchain network with customisable features

  • Polygon Nightfall, a unique privacy-focused scalable transaction solution

As of 6 June, three others solutions are in development:

  • Polygon Avail – targets off-chain scaling solutions and standalone chains 

  • Polygon Miden – a Layer 2 scaling solution for Ethereum and relies on zero-knowledge technology to merge thousands of Layer 2 transactions into one single ETH transaction, increasing throughput and decreasing transaction fees 

  • Polygon Zero – a Layer 2 scaling solution for Ethereum that separates Polygon Zero from other zero-knowledge scaling solutions

The Enterprise chain is planned. 

Since launching, Polygon has allowed users to develop nearly 20,000 dApps, attracted over 130 million unique users, experienced over three million daily transactions and hosted over 3.4 billion transactions. 

Polygon’s native cryptocurrency, known as MATIC, is an ERC-20 token running on the Ethereum network. The MATIC crypto is used to pay fees on the Polygon network, and for staking and governance. 

There are a maximum of 10 billion MATIC tokens that can be released. Over 7.96 billion are currently in circulation, according to data provided by CoinMarketCap, as of 6 June. MATIC currently (6 June) has a market capitalisation over $4.9bn and is ranked as the 18th biggest token. 

Will MATIC go up or down? Technical outlook

The MATIC crypto launched two years after Polygon was founded through an initial exchange offering (IEO) on the Binance crypto exchange platform. 

After its launch in 2019, the token struggled to rise, moving sideways and fluctuating between $0.01 and $0.03 for the next two years. 

MATIC to USD chart, March 2019 – June 2022

However, the polygon cryptocurrency started to gain traction in early February 2021, soaring to new price levels by May that same year. In just four weeks, between 22 April 2021 and 18 May 2021, the cryptocurrency MATIC price surged by 602%, up from $0.35 to a then record high of $2.45.

Despite its momentary success, the MATIC token dropped to $1.09 but managed to rebound to $2.21 by 26 May 2021. 

Following May’s highs, the polygon coin price has struggled through a volatile ride. It hit a new record-high of $2.88 on 26 December 2021, following news that the number one Ethereum App, Uniswap, had launched on Polygon. 

Since then, however, the token has been on a bearish trend, as seen on the chart above, with its price losing over half of its value from the record high, dropping $1.3802 by 15 March 2022 amid geopolitical tensions and the Russian invasion of Ukraine.

After seeing minor gains at the end of March and beginning of April 2022, the cryptocurrency dipped once again, falling from its $1.6888 high on 3 April 2022 to its $0.6015 low on 12 May 2022 – down by 64.3%. 

MATIC’s dip was largely influenced by wider negative crypto market sentiment that saw bitcoin (BTC), the biggest token by market capitalisation, fall below $27,000 and the Terra Luna collapse.

MATIC has managed to stabilise since, fluctuating between $0.70 and $0.50. As of 6 June, the polygon price in USD stood at $0.6234.

Polygon to USD, March - June 2022

GME

38.15

Current price

+5.780%

1D%

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94 %

Swap Long:

6 %

Long position overnight fee -0.0225% Short position overnight fee -0.0219% Overnight fee time 21:00 (UTC) Spread

AAPL

165.77

Current price

+3.570%

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94 %

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6 %

Long position overnight fee -0.0064% Short position overnight fee -0.0059% Overnight fee time 21:00 (UTC) Spread

GOOG

118.99

Current price

+2.520%

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Swap Short:

94 %

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6 %

Long position overnight fee -0.0225% Short position overnight fee -0.0219% Overnight fee time 21:00 (UTC) Spread

TSLA

923.27

Current price

+2.330%

1D%

Swap Short:

86 %

Swap Long:

14 %

Long position overnight fee -0.0225% Short position overnight fee -0.0219% Overnight fee time 21:00 (UTC) Spread

Technical Polygon price analysis, as of 6 June, showed that short-term sentiment for the coin was neutral.

A relative strength index (RSI) of 43 was in the neutral territory. A reading of 30 or below would indicate that the asset is becoming undervalued and a trend reversal is likely to occur. 

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The token was trading above its five-and 10-day moving averages (MA), indicating an upward price trend. 

Is Polygon a good investment?

Some of the biggest Polygon (MATIC) news came as the platform announced that it would be going carbon-negative in 2022, revealing its “Green Manifesto” – a $20m pledge to tackle climate change. 

The crypto industry has been heavily criticised for its high electricity consumption by climate change activist groups, including Greenpeace.

By joining the green movement, Polygon is not only aiding the battle against climate change, but has the potential to catch the attention of investors who value the environment, thus building the case for a bullish Polygon MATIC price prediction.  

On 22 April 2022, the platform promised to expand global payout schemes with cryptocurrencies by building Stripe Connect, a payments platform for creators, freelancers, sellers and solopreneurs.

In other Polygon (MATIC) news, the platform announced that the “largest stablecoin by market capitalisation”, Tether (USDT), was coming to the MATIC network. 

“Polygon's DeFi ecosystem will benefit greatly from Tether's role in its development,” a statement by Polygon noted.

“Tether’s integration into Polygon now gives more than 8,000 different teams using the platform an additional stablecoin option. Market volatility will be reduced as a result, and investors will have a major stable digital currency to generate returns from while moving freely within and across the network.”

Polygon had also introduced a number of new in-platform developments including:

  • The launch of Polygon ID on 29 March 2022, the self-sovereign, decentralised and private identity for Web3.

  • The introduction of the Polygon Nightfall mainnet on 17 May 2022, the “most efficient blockchain solution for enterprises, enabling businesses to orchestrate private transactions for use in supply chains & other key business functions.”

  • On 3 June 2022, Polygon made minting NFTs a whole lot easier, allowing anyone to create them with custom utilities and zero gas fees – the Ethereum blockchain requires users to pay high gas fees to mint an NFT. 

Another recent project of the MATIC network was its partnerships with Adidas Originals and PRADA – a first-of-a-kind open-Metaverse and user-generated NFT project built on the network in January 2022. 

Analyst views on Polygon’s future

In April, Citigroup released a report which estimated that Polygon has the potential to reach a $13 trillion metaverse economy by 2030. 

According to their Metaverse and Money report, Layer-2 Ethereum solutions like Polygon will continue to see “widespread adoption given the low prevailing gas costs on the Polygon network, strong user adoption, and the growing developer ecosystem and decentralized applications already available on Polygon and other Level-2s.”

The CEO and Founder of IoTex, Dr Raullen Chai, noted that “in  general, Layer-1 and Layer-2 blockchains, including MATIC, have been doing well since the DeFi summer.”

“There is news of more integrations, innovations, and initiatives happening every day. I personally do see these as bullish signs for those projects that continue to build and deliver,” he told Capital.com.

In the long run, Dr Chai noted, the MATIC token has potential to “grow in an unstoppable way and it will impact people’s lifestyles worldwide.”

“The price action for suitable protocols and products will definitely follow its fundamental values.”

Dr Chain did add, however, that as with any other cryptocurrency, the MATIC token has certain risks, just like with “any early-stage project”.

MATIC crypto price prediction 2022 – 2025, 2030

Despite recent bearish MATIC token price action, algorithm-based forecasting service Wallet Investor gave a bullish MATIC coin price prediction, as of 6 June. The site noted that MATIC is “an awesome long-term investment”, adding that it has a long-term earning potential amounting to 269.82%.

Based on its analysis of past price performance, the website expected that the token could trade at $1.002 in 2023. Although Wallet Investor didn’t provide Polygon coin price prediction for 2030, it forecasted MATIC to jump to an expected price of $2.304 by 2027.

DigitalCoinPrice supported the positive MATIC projections, but forecasted a much slower pace of growth in the following years, predicting that the token could rise to $0.87 by the end of 2022.

Its MATIC prediction for the next three years suggested that the coin could trade at $1.12 by the end of 2024 and $1.52 by the end of 2025. 

For the end of 2028, the site gave a $2.14 MATIC price target. Its long-term MATIC future price forecast suggested that the cryptocurrency could have the potential to reach $2.85 by 2030. 

Note that price Polygon predictions can be wrong. MATIC forecasts shouldn’t be used as a substitute for your own research. Always conduct your own due diligence. And never invest or trade money you cannot afford to lose.

The bottom line

The green transition and the platform’s latest adoptions appear to be fuelling the bull case for the MATIC coin, in line with the upbeat predictions from algorithm-based forecasting sites.

There are many factors at play for the future of the coin, from the overall macroeconomic environment, acceptance of the crypto markets and the level of adoption. 

Always remember that your decision to trade should depend on your attitude to risk, your expertise in this market, the spread of your investment portfolio and how comfortable you feel about losing money. 

Cryptocurrency markets are very volatile and involve a high degree of  risk. Never invest money that you cannot afford to lose.

FAQs

Is Polygon (MATIC) a good investment?

Whether MATICis a good investment for you should depend on your personal circumstances and risk appetite. Cryptocurrencies are high-risk assets. You should do your own research and evaluate the level of risk you are prepared to accept before investing. Never invest money you cannot afford to lose.

Why has the MATIC price been going down?

The MATIC price has been falling for many reasons. Tensions on the Russia-Ukraine border as well as the start of the war drove a shift in investor sentiment. This was later fuelled by overall negative crypto market sentiment that saw bitcoin (BTC), the biggest token by market capitalisation, fall below $27,000 and the Terra Luna collapse.

Will MATIC reach $100?

As of 6 June, algorithm-based forecasting service Wallet Investor predicted that MATIC could reach $1.002 in 2023 and $2.304 by 2027. DigitalCoinPrice expected MATIC to reach $2.85 by 2030. Note that predictions can be wrong and shouldn’t be used as a substitute for your own research.

What is the future of Polygon MATIC coin?

Both Wallet Investor and DigitalCoinPrice gave bullish Polygon crypto price predictions. Wallet Investor expected that MATIC could reach 2.304 by 2027. DigitalCoinPrice predicted that the token could surpass the $2 mark by 2030. Note that predictions can be wrong and shouldn’t be used as a substitute for your own research.