bt-crow.com
02 December 2021 10:36, UTC
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Boom week for Polygon, a framework aimed at improving interoperability between the Ethereum blockchain and interoperable networks, shows no signs of fading away.
This is a coin that has already experienced large price fluctuations since the end of April 2021 and is still in this carousel, its price has risen more than 34% in the week to date (December 2).
MATIC hit a record high in May of $ 2.68. Although it fell below $ 0.7 in July, it rallied above $ 2 at the end of October.
However, it is still 22% below the May high. At the time of writing (Dec 2), the MATIC non-mining token is trading at around $ 2.09, giving it a market cap of $ 14.69 billion and making it the 15th largest cryptocurrency, according to CoinMarketCap.
Polygon Technical Analysis (MATIC)
MATIC has been one of the cryptocurrency growth leaders this year. Since the beginning of 2021, the price has risen from $ 0.01 on January 1, 2021 to the current level of $ 1.78 (November 30).
MATIC, Polygon’s proprietary token, rose roughly 760% in a four-week surge, rising from $ 0.34 on April 20, 2021 to a record high of $ 2.68 on May 18, 2021.
After a record high, the MATIC rate fell to $ 1.09 on May 23, but recovered soon on May 26, 2021, reaching $ 2.21. The token price gradually dropped to $ 0.69 by July 20, 2021, but has been gaining momentum since then.
By the end of October, the MATIC price reached a new high of $ 2.13. Since then, the token has lost some of its strength, rising from 2.13 on October 28 to $ 1.58 as we advanced through November 2021.
Will MATIC manage to overcome recent pressures and resume bullish momentum in what’s left of 2021 and beyond?
Considering Matic’s short to medium term outlook for this year against the US dollar, traders should look for multiple support and resistance levels.
As of December 2, the nearest support level is $ 1.83, followed by $ 1.65. The nearest resistance level is $ 2.14, followed by $ 2.27.
Polygon (MATIC) major price drivers
The recent price spike and its most recent break through the major resistance at $ 1.50 may have been triggered by recent news.
- On August 19, 2021, Polygon Network announced the creation of a Decentralized Autonomous Organization (DAO). According to Polygon, the system aims to form committees that facilitate discussion between projects such as Sushi, Aave, QuickSwap and others to “bring DeFi to the next million users.”
- On September 14, 2021, Ernst & Young (EY) and Polygon announced a joint project to develop and implement scalable and enterprise solutions for the Ethereum ecosystem. As part of this initiative, “EY and Polygon will be working on Polygon Nightfall, a publicly available privacy-focused accumulator. In addition to this, EY will offer its other flagship blockchains on Polygon and jointly develop new Polygon-based blockchains for enterprise use. “
- On October 20, 2021, San Francisco-based Bitwise Asset Management announced the launch of its Bitwise Polygon Fund (MATIC). According to a company press release, the Fund will serve as a professionally managed investment vehicle that will give wealthy Bitwise clients access to MATIC, Polygon’s proprietary cryptocurrency.
- On October 29th, Polygon shared their latest user growth update. According to the company, Polygon has “83.14% active addresses relative to Ethereum.” Polygon has experienced higher daily user average versus Ethereum since October 1st.
- On November 20, Polygon invited Uniswap’s DeFi protocol to deploy it on Polygon PoS. The UNI community has agreed, so the move is expected soon. Other major protocols like Aave and Sushiswap have already moved to Polygon to avoid relatively high transaction fees and slow Ethereum speeds, as well as network congestion.
- On November 30, IDEX, a decentralized exchange, announced the launch of v3 of its exchange on the Polygon network, stating that it is the world’s first hybrid DEX liquidity exchange.
MATIC Price Prediction
Scalability is a major concern for most of the leading cryptocurrencies, especially BTC and ETH. Most likely, the first creators of digital currencies did not even suspect that their creations would become so popular that they could hardly cope with the load on the network. Therefore, any solution that works that reduces the load on the network while increasing the speed of transactions and lowering their cost is highly appreciated and welcomed by the community. Polygon (formerly Matic Network) aims to solve this problem, which is why it is so popular. While there is a scalability problem, the Polygon project will be very relevant and in demand. The only real risk for the project is Ethereum 2.0, which should solve the scalability problem and, in a sense, make Polygon irrelevant.
However, the transition to Ethereum 2.0 is a rather lengthy process and will not solve all problems at once. In addition, the founders of Polygon set themselves a very ambitious goal – to make the project literally an Internet of blockchains, allowing them to interact with each other. Similar projects already exist, for example, Cosmos (ATOM) or Polkadot (DOT), but so far such solutions have no real application and are far from perfect.
It should be noted that in October, the Polygon network surpassed Ethereum in the number of active wallets, and the British Ernst & Young, one of the big four accounting firms, integrated Polygon to scale Ethereum solutions. In the context of competition with Vitalik Buterin’s project, this bodes well for a potential future project.
However, investing in a relatively young cryptocurrency project should be treated with caution. When investing in a startup, it is important to remember that ambitious plans do not mean that the project will actually achieve its goals and become a leader in its field. Polygon is a promising project, but it is important for investors to monitor how the team achieves its goals.
MATIC Coin Price Prediction: 2021, 2022, 2023, 2025, 2030
Several algorithm-based forecasting services share price predictions for the MATIC cryptocurrency for the remainder of the year and beyond (as of November 30).
- GovCapital believes MATIC could start 2022 at $ 1.98, rising to $ 3.79 by the end. By the end of 2023 it will be $ 5.48, and by December 2025 – $ 8.34.
- Wallet Investor expects MATIC to be a “great” long-term investment. According to Polygon’s forecast, MATIC could start 2022 at $ 1.83 and rise to $ 3.61 by the end. He suggests it could hit $ 5.42 by the end of 2023 and $ 9.04 by the end of 2025.
- DigitalCoin is also upbeat on the Polygon (MATIC) cryptocurrency price forecast, with a gradual increase to $ 3.02 by the end of 2021, to $ 3.63 in 2022, $ 4.41 in 2023 and $ 6.31 in 2025 year. For 2030, the most distant Digital Coin price prediction is $ 8.46 by the end of 2028.
When looking for MATIC price predictions, it is important to remember that analysts’ predictions can be wrong. Analysts’ forecasts are based on fundamental and technical research on cryptocurrency performance. Past performance is not a guarantee of future performance.
It is important to do your own research and always remember that your decision to trade depends on your attitude to risk, your experience in the market, the spread of your investment portfolio, and how comfortable you feel about losing money. You should never invest money that you cannot afford to lose.
Posted by Newt Salamander, Analyst at Freedman Club Crypto News
#future #hold #Polygon