We continue providing price forecasts for various coins and tokens. This article reviews Polygon (MATIC), its history, and principles of work, provides brief technical and fundamental analysis and answers frequent questions.
MATIC Fundamental Analysis
Some fundamental factors support MATIC\Polygon and make it attractive for long-term investors. Let us discuss each of them to understand the fundamentals of this token.
What Coin Is Polygon? What is the difference with MATIC Token
Polygon (MATIC) is a non mineable utility token of the Polygon network, formerly known as the Matic Network. Although the project has expanded its concept from a second-layer solution for the Ethereum blockchain to a multi-chain system, it has retained the MATIC token that plays an important role in the functioning of the network.
Solution for the Token
MATIC Network (now Polygon) is a layer 2 scaling solution based on the Ethereum platform. Ethereum is the main net for Polygon (MATIC) Network, but this platform has some limitations. For example, it is not customizable, quite expensive, and slow.
Polygon uses a modified Plazma framework, initially proposed by Vitalik Buterin, and a Proof-of-Stake protocol to avoid these limitations. The solution supports over 65,000 transactions per second, and block confirmation lasts for 1-2 seconds. It seems very attractive, especially for those crypto users who used to wait for days for Bitcoin transaction verification. So, Polygon (MATIC) is not only a coin but also a working solution that backs a coin.
Moreover, this solution can create a network, a system of connected blockchains. Polygon (MATIC) is an ERC-20 token. ERC is in the universal token standard by Ethereum. Polygon combines a protocol and a framework to provide a base for numerous blockchains.
While it is faster and cheaper than Ethereum, many blockchain developers use it for their projects, keeping in mind that Polygon-based blockchains are easily scalable. So, it is a good option to launch an MVP, check the hypothesis, launch a blockchain start-up, and so on. It means that all applications that use Polygon solutions are compatible with each other and with the Ethereum network.
Unlike Ethereum, this network works fast and can be connected with Ethereum as well. Polygon users pay for each transaction within the network in MATIC tokens.
Big Names behind the Project
Since Polygon moved to its own network, some big names support it. We mean such services like Coinbase and Binance. In the crypto world it means a lot. Perhaps, these big names have some insights about the Polygon network, or they just believe in its potential — for MATIC (Polygon) price it is a positive factor. Polygon users pay for each transaction within the network in MATIC tokens, so the support of big names pushes its price up.
What Is Polygon MATIC Used For?
MATIC token is used for a variety of purposes within the Polygon ecosystem, including participating in network governance by voting on Polygon Improvement Proposals (PIPs), enhancing security by staking, and paying gas fees.
Who Uses Polygon?
Developers use Polygon as a platform to create interconnected blockchain networks for specific purposes (e.g. DeFi, GameFi and NFT startups). Investors use the Polygon to receive passive income from MATIC token staking or from speculation on the exchange rate. And traders use decentralized exchanges on Polygon for trading activities.
MATIC Technical Analysis
As we mentioned above, now MATIC is rebranded to Polygon. The rebranding occurred in February 2021, and it was good news for Polygon because the price skyrocketed. It moved up from $0.03 to almost $0.9 in April. Moreover, after a small correction, the price tripled and in May it reached $2.68 — for now it remains the absolute maximum ever. At the same time, all the major cryptocurrencies collapsed, but not MATIC. One of the probable reasons is that the crash of Bitcoin and Ethereum usually results in the growing interest in alternative blockchain solutions.
Then the trend reversed and smoothly moved down to $1.15-$1.20 and fluctuated in this range. The bearish trend of MATIC can be related to the rumors about the fraudulent nature of this project. The rumors faded away, which is a bullish sign for MATIC. However, the coin cannot accumulate enough power to break the resistance level and stay in a higher range.
In the middle of 2022, MATIC is trading in the $0.6-$0.8 range. Since MATIC reached its technical resistance level at $1.31, the price bounced back to $0.6. Then the pattern repeated: MATIC price moved up in the ascending channel and breached the threshold at $1.31 and even higher.
However, MATIC had enough power neither to continue the upward movement nor to keep the position of $1.31. The trend reversed and MATIC went down to $0.6.
If the trend will not reverse again at the beginning of the next week, the price can go down to the 2019 accumulation level of $0.2-$0.38. In this range, it will fluctuate until it accumulates enough power to restore the upward movement.
So, if MATIC goes down to $0.2-$0.38, it would be the perfect time to buy MATIC. It will be a perfect entry, especially for long-term investments. In the long term, the forecast for MATIC is bearish.
MATIC Price Prediction
Popular platforms provide their forecasts for all popular currencies, including MATIC. Most of the forecasts are positive: in the nearest future the price of MATIC will not significantly change, but slight growth is possible. In 2025, MATIC can double its price, and in 2023 its price can reach $13.36, according to the most optimistic forecasts.
In our opinion, investors should rely on pessimistic forecasts because the price dynamics since the beginning of 2022 show some weakness of this token.
Polygon Price History
From the launch until the beginning of 2021, the MATIC coin was not a very interesting asset for investors, so its value did not show a sharp increase, ranging from $0.003 to $0.05. A noticeable increase began in May 2021, when the coin reached its first peak of $2.4544. However, in July of that year it dropped to $0.6901 per coin.
MATIC reached its historical maximum on December 27, 2021, when its price was $2.92. However, it did not stay at the peak for long, and since the beginning of 2022, its value has fluctuated, but has been falling down.
MATIC Price Prediction for 2022
For the rest of 2022, the price of MATIC should not change significantly. The most pessimistic forecasts promise a fall to $0.77, while optimists see growth to $1.434 in the last months of 2022.
|-11.89 %||$ 0.7694|
|+5.33 %||$ 0.9197|
|2023 Jun||+8.96 %|
|2023 Jul||+18.80 %|
MATIC Price Prediction for 2023
For next year, the forecast is almost the same. No significant falls or skyrocketing growth is expected, the best-predicted price is $1.753, the worst one is $0.740362, and the moderate forecast foresees $1.09.
MATIC Price Prediction for 2024
Popular forecasting platforms have a similar opinion on MATIC price in 2024 — they all prognoses’ the moderate growth in the second half of the year. The range of price is $1.123548 – $2.202, and a moderate forecast predicts growth to $1.6.
MATIC Price Prediction for 2025
2025 should be a volatile year for MATIC, and the price can move chaotically. The price at its peak will move along the corridor $1.366107 – $2.699. At the end of 2025 MATIC can grow as high as $2.23.
MATIC Price Prediction for 2030
For long-term investments MATIC should be a good asset: the future looks encouraging. The evangelists of MATIC predict the growth to $13.36, over 10 times the current price. Moderate forecasts suppose the growth up to $4.23743, with also good ROI. Of course, some experts insist MATIC will not grow above $1.0 and will stay at $0.792342.
What is Polygon (MATIC)?
The story of Polygon (MATIC) starts with the success of the Ethereum network. Ethereum launched its ERC-20 token as the universal base for smart contracts. It opened a new era in the history of blockchain systems: Ethereum became a home for numerous smart contracts and blockchain startups.
As a result, the number of applications reached the threshold. The speed of transactions decreased, and the fees for transactions rose. For small projects, the fees became too high to stay profitable and economically viable.
Polygon (MATIC) is a layer 2 solution. It is also based on the ERC-20 token and is compatible with the Ethereum network. However, it is a separate side chain. New applications can join the Polygon network and get access to thousands of Ethereum-based apps. At the same time, the transaction speed in the Polygon network is thousands of times higher than in the Ethereum.
For more effective work, Polygon uses the Proof-of-Stake protocol. It means that each transaction in the system should be approved by validators. For their work, validators get some extra internal tokens, MATIC. So, MATIC is the natural token in the Polygon system.
The last thing we should clarify is a double name Polygon (MATIC). Polygon network started in 2017 and was rebranded in early 2021 as MATIC. Sometimes we use double names, sometimes just one of them, but in both cases, we mean the same network and token.
How to Buy a Polygon(MATIC) coin?
You cannot buy physical token Polygon(MATIC), so you have to go online, find a crypto exchange service, and follow the instructions step by step.
- Register an account on the chosen service. The registration is usually easy, but you should be aware of the KYC (Know Your Customer) program. This international policy prevents money laundering and fake identity usage. So, you will be asked for more personal data, phone number, self-portrait, driver’s license number, and more. If you are asked for this data, it is normal. If you refuse to provide it, your account will be limited and you cannot buy Polygon(MATIC). So make sure you are OK with the rules and fees of the chosen service.
- After registration and verification are finished, replenish your wallet. You can transfer some fiat money or cryptocurrencies from the existing wallets to your account, or you can get some money from a third party, like your friend, partner, or client.
- Exchange your crypto or fiat money for Polygon (MATIC) tokens. Then you can use it to pay for transactions in the Polygon Network, keep it for some time, or exchange it for crypto or fiat money.
Is Polygon(MATIC) a good investment in 2022?
We collected and compared Polygon (MATIC) price predictions from the largest crypto platforms. Now we can make the following conclusions:
- For those investors who want to take risks with a high-volatile token to make fast money, Polygon(MATIC) is not the best choice. All analysts agree that in the nearest two years, we should not wait for a skyrocketing growth for this token.
- Middle-term moderate investors can consider Polygon(MATIC) as part of a crypto portfolio to diversify risks and protect funds from inflation. The price of Polygon(MATIC) will fluctuate in the relatively narrow range, which makes it relatively safe and active among other altcoins.
- Long-term investors should consider Polygon(MATIC) as a profitable asset. Most predictors agree this token will grow in 2024-2025. The price can grow by 10 times and more. Now, when the price of this token is at the bottom of the trend ($0.6-$0.8), it is a good moment to buy Polygon(MATIC).
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Disclaimer: Please keep in mind that the content of this article is not financial or investing advice. The information provided is the author’s opinion only and should not be considered as direct recommendations for trading or investment. Any article reader or website visitor should consider multiple viewpoints and become familiar with all local regulations before cryptocurrency investment. We do not make any warranties about reliability and accuracy of this information.