Polygon price prediction: What is polygon (MATIC)?
There are some blockchain systems which aim to work with other blockchains to make things quicker and easier, and Polygon is one of them. But what is polygon (MATIC), its native cryptocurrency?
Let’s see what we can find out, and also examine some of the polygon price predictions that were being made as of 20 March 2023.
Polygon explained
Polygon, previously known as Matic Network, claims to be the first easy-to-use platform which helps counteract problems caused by extra traffic on the Ethereum (ETH) blockchain, as well as working with infrastructure development. Founded by former Ethereum employees Jaynti Kanani, Sandeep Nailwal, Anurag Arjun and Mihailo Bjelic in 2017, Polgon wants to create a “full-fledged multi-chain system”.
In the past few 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, computer programs which automatically execute once certain demands are met, which it claims makes building decentralised applications (dApps) easy.
However, ETH’s growing popularity has also made the Ethereum blockchain arguably harder to use, thanks to rising gas fees and excessive traffic, which led to the creation of Matic.
Matic used a technology called Plasma, which processed transactions off-chain before moving them onto the Ethereum main chain to finalise them.
This meant it could move quickly, without being slowed down by a high user base, but it could still utilise dApps and the overall Ethereum technological ecosystem to gain a wider market. It was dubbed a layer-2 solution, which meant it was not trying to change the basic blockchain layer, but people could work outside it.
In 2021, Matic became Polygon. As well as the name change, it also altered the way it worked. The new version of the platform aimed to create a truly interoperable system of mini-blockchains – or sidechains – which would allow people to operate it with a range of blockchains.
If you were to imagine it as a kind of layer-2 scaling solution plus, you would be in a similar ballpark to its founders when they had the concept for turning Matic into Polygon.
One thing to note here is that, on 15 September 2022, Ethereum completed its transition to a proof-of-stake (PoS) consensus mechanism which, it is hoped, will help the network speed up. What long-term effect that will have on the likes of Polygon remains to be fully seen.
Every blockchain-based network needs to have its own native token, and Polygon has the conveniently named polygon coin, also known by its ticker handle of MATIC. The MATIC crypto is used to pay fees on the Polygon network, and for staking and governance.
What is your sentiment on MATIC/USD?
Polygon price history
MATIC price history from launch to present - Credit: CoinMarketCapLet’s now take a quick look at the MATIC price history. While past performance should never be taken as an indicator of future results, knowing what the crypto has done in the past can give us some much-needed context when it comes to either making or interpreting a polygon price prediction.
When MATIC first came onto the open market in April 2019, it was worth about $0.00263. While it went up slightly to $0.04168 in December 2019, it went down again and started 2021 at $0.01781. It was around that time that the market picked up and, with Matic becoming Polygon in February, the price rocketed and it looked like nothing could stop it, as it broke past $1 on 9 May and $2 on 18 May before market conditions sent it back down again. However, things improved towards the end of the year and, on 26 December 2021, it reached an all-time high of $2.92 and closed the year at $2.53.
While 2021 was a year to remember for both crypto and MATIC, 2022 has proven to be one to forget. A series of market crashes left the coin reeling, and on 18 June it fell to a low of $0.3228. The announcement of zkEVM, an Ethereum Virtual Machine-compatible program then saw the token briefly peak above the dollar mark towards the end of July before dropping back down again.
The token started to regain its price in October after hot polygon (MATIC) news that Robinhood (HOOD) had announced a collaboration with Polygon for its new Web3 wallet, along with allowing users to send and receive MATIC on its brokerage. It then partnered with Meta to work on non-fungible tokens (NFTs). As a result, it reached a high of $1.29 on 7 November before the collapse of the FTX (FTT) exchange saw it drop to a low of $0.773 on 21 November 2022.
There was then a recovery to $0.9486 on 3 December before another downturn to close the year at $0.7585, down 70% across the year. In 2023, though, MATIC rallied as the crypto market made something of a recovery. On 14 January it went back above the dollar on its way to a high of $1.56 – its best price since April 2022 – on February 18. By 24 February 2023, the news that Polygon was to make 20% of its workforce, or around 100 people, redundant, was a factor in the coin's price dropping to around $1.35. In March, MATIC continued on its downward trajectory, sinking to a low of $0.9493 in the wake of the collapse of the Silvergate bank, before it made a recovery to stand at around $1.15 on 20 March, despite the news that zkEVM was to launch on 27 March.
At that time, there were a little over 8.7 billion MATIC in circulation out of a total supply of 10 billion. This gave polygon a market cap of around $9.9bn, making it the eighth-largest crypto by that metric.
Polygon price prediction round-up
With that all over and done with, let's take a look at some of the polygon price predictions that were being made as of 20 March 2023. It is important to remember that price predictions, especially for something as potentially volatile as cryptocurrency, often turn out to be wrong. Also, many long-term crypto price predictions are made using an algorithm, which means that they can change at a moment’s notice.
First, CoinCodex had a rather gloomy short-term polygon price prediction for 2023, saying the coin could drop to just under $1.03 by 25 March before dropping further to $0.9924 by 19 April. The site’s technical analysis was bearish, with 17 indicators making downbeat signals against 12 sending bullish ones.
PricePrediction made a polygon coin price prediction which said it could reach $1.40 in 2023. The site’s polygon price prediction for 2025 anticipated it hitting $2.85 that year. By the start of the next decade, the site’s MATIC price prediction said that polygon could trade at $17.76.
DigitalCoinPrice was also optimistic when it came to making a polygon crypto price prediction. The site said that the coin could trade at a potential $2.43 in 2023 and $3.91 in 2025, before going on to make a polygon price prediction for 2030 of $11.45.
Wallet Investor had a MATIC coin price prediction that said that polygon was in for a tough time over the next 12 months, and could fall to a mere $0.44 by late March 2024.
When considering a MATIC coin price prediction, it’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin or token’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.
If you are considering investing in cryptocurrency coins and tokens, we recommend that you always do your own research. Look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns, and never trade with money that you cannot afford to lose.
FAQs
Is polygon a good investment?
It is hard to say. A lot will depend on how the market behaves as a whole and whether investors can believe in a company that has cut a substantial part of its workforce.
In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether the MATIC token is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors.
Keep in mind that past performance is no guarantee of future returns, and never invest money that you cannot afford to lose.
Will polygon go up or down?
It is hard to say. While the likes of DigitalCoinPrice were upbeat as of 20 March 2023, other sites such as Wallet Investor were far more bearish. Remember that price predictions often end up being wrong and that prices can, and do, go down as well as up.
In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether MATIC is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors.
Keep in mind that past performance is no guarantee of future returns, and never invest money that you cannot afford to lose.
Should I invest in polygon?
Whether you should invest in MATIC is a question that you will have to answer for yourself. Before deciding whether or not to invest, you should do your own research not only on polygon but on other layer-2 related coins and tokens.
Never invest more money than you can afford to lose, because prices can go down as well as up.
What is the future of MATIC coin?
DigitalCoinPrice gave a bullish Polygon crypto price prediction, with it expected to gradually climb above $10 by 2030. However, not every Polygon coin price prediction was as bullish: Wallet Investor expected MATIC to stoop to below $0.45 in a year.
Note that predictions can be wrong, and should not be used as a substitute for your own research.
Markets in this article
Related topics
