Polygon started as an Ethereum scaling solution and has developed into its own rapidly growing ecosystem in recent years. The price development of MATIC has given investors a lot of hope for a future increase in value in recent months. But what is the long-term forecast for the Polygon (MATIC) price? In this Polygon price prediction article, we see what Polygon MATIC is and why its prices are about to make 20% in the short run.
What is Polygon (MATIC)?
Polygon is a scaling solution for the Ethereum Blockchain. It should enable faster and more efficient transactions. Polygon uses so-called “sidechains” to better distribute the transaction load that occurs on Ethereum. This is what a layer 2 solution is about.
To avoid the high fees, Ethereum built its own scaling solution. At first, the network was called MATIC. This was published on the Ethereum blockchain at the end of 2017. Later the network was renamed Polygon. MATIC is just the name of the token.
With the second level, Polygon wants to relieve the Ethereum blockchain. Polygon’s sidechains run on the efficient proof-of-stake consensus mechanism. Developers can outsource their smart contracts and dApps to Polygon. These solutions can then be fed back into the main chain.
Is MATIC Price doing Good?
MATIC price saw massive increases in late 2021 in the bull market, making the outlook for Polygon very positive for the next few years. But then the bear market set in and the price fell more sharply again. In contrast to many other cryptocurrencies, the price increase of MATIC continued until the end of December. There the price reached its all-time high of 2.88 US dollars.
As a result, the MATIC course fell in 2022. At the end of January, the MATIC course fell to 1.36 dollars. In the weeks that followed, the price stabilized even more until the end of April. But in May and June the rate fell again. In mid-June, the MATIC price fell below $0.35. After that we saw stabilization again and slight increases. At the moment, the polygon price is 0.88 dollars (as of 09/09/2022) .
Is Polygon Crypto a Good Project?
Polygon (MATIC) first started out as a pure scaling solution from Ethereum. Since Ethereum is by far number 1 in decentralized applications, an extremely large number of developers used the Polygon blockchain. As a result, Polygon’s popularity has increased rapidly and continuously in recent years.
Furthermore, Polygon has even bigger goals for the future. With its “sidechains”, it wants to become the internet of blockchains for Ethereum. The development is towards a fully-fledged multi-chain ecosystem. This should be extremely cheap, efficient, fast, and scalable for developers. These prospects ensure that in the future the forecast for the Polygon course is excellent.
Polygon Price Prediction – Will MATIC reach 1$?
Polygon is now more than just a pure scaling solution for Ethereum. In the past, Polygon benefited greatly from existing partnerships on the Ethereum blockchain. The increasing problems with high fees and slow speeds further increased interest in Polygon.
The Ethereum merge with a change of the consensus mechanism to Proof-of-Stake on the Ethereum main chain is a challenge for Polygon. But Polygon could also benefit from this in the long term. A higher scalability at Ethereum should also ensure that even more applications are also shifted to the Polygon blockchain. Furthermore, the network can continue to establish itself as its own ecosystem. Now that the Merge is about to happen, there is high probability that MATIC increases as well. In figure 2 below, we can see that a breach in the price of $0.94 should lead MATIC to easily reach 1$, especially with all the hype that’s been happening lately. This will lead to a 20% price increase.
Is an investment in MATIC worthwhile?
Right now we are in a bear market. The prices of cryptocurrencies are much lower than in bullish times. Since the bull market should start again in the medium and long term, an investment in the MATIC token from Polygon should be worthwhile at the currently comparatively low prices.