Polygon and the MATIC token: Let us dig deeper
Polygon is a layer-2 blockchain project that helps developers accelerate and supercharge their Ethereum applications. It uses several technologies, including zero-knowledge rollups, Ethereum sidechains, and miden to achieve this. Today, over 7,000 developers have selected Polygon. Some of the best-known ones are Aave, Curve, and Uniswap. According to DeFi Llama, it has a total value locked of over $4 billion.
Polygon has grown to become one of the biggest platforms in the blockchain industry. Its token has a market cap of over $10 billion and is the 18th biggest coin in the world. It has a maximum supply limit of 10 billion coins while the number of those in circulation is over 6.8 billion.
At the time of writing, MATIC was trading at $1.52, which was about 22% above the lowest level this year. The price was about 47% below its record high.
Polygon (MATIC) price history and technical analysis
Polygon, like most altcoins, has been under pressure in the past few months as concerns about the industry remain. Investors have also been Worried about the hawkish Federal Reserve and its impact on risky assets like Polygon.
Polygon jumped to an all-time high of $2.93 in December last year during the overall crypto rally. The price was about 350% above the lowest level in August 2021. It then declined sharply as the cryptocurrency winter continued. This performance also coincided with a significant drop of its TVL.
On the daily chart, the coin has moved to the 61.8% Fibonacci retracement level. It has also moved below the 50-day moving average while the MACD has formed a bullish divergence pattern. It has also formed a strong support at $1.3110. Therefore, a rebound will likely happen in the coming weeks.
Polygon (MATIC) price prediction for a year
Polygon price faces a tough challenge in 2022 considering that the Federal Reserve has vowed to become more hawkish in its battle against inflation. There are also geopolitical risks because of what is happening in Ukraine. Further, there are concerns about regulations in the cryptocurrency industry. Another issue is whether the pivotal industries like metaverse and DeFi will continue performing well.
According to Long Forecast, Polygon will end the year at $1.62, which is slightly above where the coin is trading at. Another study by Wallet Investor estimates that the coin will end the year at about $2.5.
Meanwhile, using the Schiff pitchfork, we can estimate the key levels to watch by end of 2022. As shown below, the lower side of this estimate is $1.83 while the upper range is at around $3.50.
Polygon price prediction for 2025
The blockchain industry is expected to keep growing in the next few years as most of the platforms built using the technology go mainstream. A clarity of regulations will also help push institutional investors to the industry. Therefore, if this happens, coins like Polygon will likely be top beneficiaries. As such, the price will likely be significantly higher than where it is today.
According to Long Forecast, the MATIC token will be trading at about $2.2 in December 2025. This price is significantly higher than where it is today. According to Wallet Investor, the coin will grow by over 300% between 2022 and 2025. Further, Digital Coin Price estimates that MATIC will average about $2.95 in 2025.
Using the weekly chart and the Schiff pitchfork, the average price of Polygon in 2025 is expected to be between $3 and $4.88.
Polygon in questions & answers
Is Polygon coin real?
Yes. Polygon is a real cryptocurrency. It is the biggest layer-2 network that has been widely adopted by developers in all sectors like DeFi and the metaverse. MATIC is also offered in most centralized exchanges.
Will Polygon reach $10?
It is unlikely. MATIC is trading at $1.54, meaning that it needs to rise by over 600% to get to $10. While such a move is possible in the cryptocurrencies industry, it is unlikely that it will happen in the near term.
Should I buy the MATIC coin?
Polygon is a good blockchain project that is widely used. It is also possible to stake the coin and earn an above-average reward. Therefore, if you have a long-term investment horizon, it will be a good asset to buy.
How much will be Polygon be in five years?
In my estimation, and as mentioned above, the MATIC price will be much higher than where it is today. A conservative 4x multiple means that it will be trading at about $6.
Where do I buy Polygon?
You can buy Polygon in most centralized and decentralized platforms like Binance and Uniswap. Also, you can buy Polygon on peer-to-peer payment platforms.
This article represents the views of the author. Cryptocurrencies are highly speculative assets, and the author will not be held liable for any losses.
